US to Replace Global Tariff With Section 301 Duties

The United States is preparing to replace an expiring 10% global universal tariff with new Section 301 duties this week ^[1].

This shift creates a critical legal juncture for bilateral trade agreements, specifically testing whether the U.S. will honor existing tariff ceilings with allies like South Korea. The transition occurs as the U.S. seeks to pivot its trade enforcement toward specific issues, such as imports linked to forced labor.

The 10% global tariff, established under Section 122, is set to expire on July 24, 2026 ^[1]. In its place, the U.S. Trade Representative is moving toward Section 301 measures. These proposed tariffs for forced-labor imports are expected to range from 10% to 12.5% ^[3].

This transition puts the trade relationship between Washington and Seoul under scrutiny. South Korea currently operates under a 15% tariff-cap agreement ^[1]. While the U.S. government has said it will uphold tariff caps in deals with Japan, the EU, and other partners, the practical application of Section 301 duties may challenge that commitment ^[2].

Trade analysts note a contradiction in current signals. Some reports suggest the new duties will put the 15% rate to a major test, while the U.S. trade chief has said the administration would respect the caps established in its trade deals [1, 2].

The timing of the expiration means that by Friday, the legal framework governing these imports will shift. The result will determine if the 15% cap remains a hard ceiling or if Section 301 enforcement allows the U.S. to bypass previous bilateral agreements to target specific labor violations [1, 3].