Archive · 26 Jul 2026
Trump's Section 301 Tariffs Favor Trade Partners
The Trump administration is using a law called Section 301 to put tariffs on goods from other countries.
Normally, these tariffs should be the same for all countries that do the same thing wrong.
But now, countries that have made trade deals with the US get better treatment.
For example, the European Union and Taiwan pay less in extra tariffs than India, even though they all were found to have the same problem with forced labour.
This could cause legal problems because it's not fair.
The think tank GTRI says this new way of doing tariffs doesn't give the trade partners much benefit and might not last.
The Trump administration is using Section 301 tariffs to favor countries with recent trade agreements.
Countries like the EU and Taiwan pay less in extra tariffs compared to countries like India.
The US Supreme Court struck down the reciprocal tariff regime in February 2026.
GTRI argues the new tariff policy is vulnerable to legal challenges and offers limited commercial gains.
The policy effectively restores some benefits of recent trade agreements under a different legal authority.
- Who
- The Trump administration, Global Trade Research Institute (GTRI), US Trade Representative (USTR), European Union, Japan, South Korea, Taiwan, Switzerland, India
- What
- The Trump administration is using Section 301 tariffs to favor trade partners despite identical violations, creating legal risks.
- When
- Forced labour determinations issued on July 23, 2026; US Supreme Court ruling on February 20, 2026.
- Where
- United States, European Union, Japan, South Korea, Taiwan, Switzerland, India
- Why
- To preserve the benefits of recent trade agreements and advance broader trade policy objectives.
Trade Agreement Partners
Non-Trade Agreement Countries
Tariff Treatment
Trade Agreement Partners
Countries with recent trade agreements pay only enough Section 301 duty to reach a tariff ceiling (e.g., 10% for EU, 12.5% for Japan, South Korea, Switzerland).
Non-Trade Agreement Countries
Countries without trade agreements pay the full Section 301 duty on top of the MFN tariff.
- Section 301 of the US Trade Act of 1974
- Designed to address unfair trade practices by trading partners that harm US commerce.
- Forced Labour Determinations
- Issued on July 23, 2026, by the US Trade Representative.
- Tariff Ceilings
- EU and Taiwan: 10%; Japan, South Korea, Switzerland: 12.5%; Others: MFN tariff plus full Section 301 duty.
- US Supreme Court Ruling
- February 20, 2026, struck down the reciprocal tariff regime.
- GTRI Founder
- Ajay Srivastava