US Building Trump implements Section 301 tariffs to replace Section 122

Research evidence excerpt

US Building Trump implements Section 301 tariffs to replace Section 122

Global Research

23 July 2026ab

First Read

EquitiesUS Building

Trump implements Section 301 tariffs to replace Americas

Section122 Home Construction

John Lovallo, CFA

Analyst

john.lovallo@ubs.com

Trump announces Section 301 tariffs to replace expiring Section 122 levies +1-212-713 9150

This evening the Trump administration announced replacement tariffs under Section Matthew Johnson

301 (effective at 12am ET) to maintain his foreign policy framework (link), given the Analyst

predetermined expiration of the Section 122 tariffs on 7/24/26. Section 122 was a matthew-h.johnson@ubs.com

temporary measure announced on 2/20/26 (effective 2/24/26) authorizing the President +1-212-713 2576

to impose surcharges of up to 15% (10% ultimately enforced) for up to 150 days to Nifemi Oduntan

address "fundamental international payment problems" (link). These were introduced Associate Analyst

given that the Supreme Court ruled earlier that day that the administration's 4/2/25 nifemi.oduntan@ubs.com

"Liberation Day" (link) use of the International Emergency Economic Powers Act +1-212-713 1246

(IEEPA) to enact reciprocal and fentanyl tariffs was unlawful (link). Section 301 utilizes

the authority of the Trade Act of 1974, a major provision of which is dealing with

countries that "failed to impose and effectively enforce a labor import prohibition"

(link). As a result, the Trump administration announced 10% tariffs on imports from 17

countries, including Canada, Mexico and India. Imports from 5 countries and regions,

including the EU, Japan and Taiwan will face 10% or 12.5% tariffs, depending on the

exemption status of certain products. Imports from all other countries will be subject to a

12.5% tariff (link).