Section 301 tariff hearings conclude in Washington, D.C
- Broad new tariff push under consideration: The USTR is investigating structural excess capacity and production across 16 economies and could announce a new round of Section 301 tariffs (covering countries like the EU, China, India and others) as early as July 2026.
- Strong public and legal headwinds: Hundreds of public comments largely oppose new tariffs, while recent court rulings have struck down related tariff actions — potentially pushing the administration to rely more heavily on Section 301 authority.
- Businesses need a plan: While the tariffs are uncertain, businesses need to understand the threats and opportunities they could present if enacted.
As the Trump administration considers a new round of global tariffs using Section 301 authority, a government panel heard testimony from 144 witnesses over a four-day period in early May. The Office of the U.S. Trade Representative (USTR) is conducting a formal Section 301 investigation into the acts, policies and practices relating to structural excess capacity and production in manufacturing sectors across 16 economies. Section 301 of the Trade Act of 1974 gives the USTR the authority to investigate and respond to foreign trade practices that are deemed unfair, unreasonable or harmful to U.S. commerce.
The potential tariff action covers the European Union, Switzerland, China, India, Japan, South Korea, Taiwan, Vietnam and Mexico, among others.
Since initiating the investigation on March 17, 2026, the USTR has received more than 800 public comments, many of which oppose additional tariffs. Under Section 301, the federal government must follow certain procedures, including receiving public input, before imposing tariffs on imports from targeted countries. This is the same statutory process used by the first Trump administration to impose tariffs on China, many of which remain in effect today.
The USTR published the investigation and hearing procedures in the Federal Register, including opportunities for public comments and witness testimony. Sources in Washington indicate the administration could announce proposed Section 301 tariff rates and the products they would cover in July.
The USTR is also conducting a separate Section 301 investigation into the practices of 60 economies related to the failure to prohibit and effectively enforce bans on the importation of goods produced with forced labor. That investigation includes many of the countries subject to the excess capacity investigation, as well as Canada.
Trump turns to Section 301 after courts struck down IEEPA tariffs
It is a widely held view in Washington, D.C., that the Trump administration could use Section 301 tariffs to replace prior tariff actions currently facing legal challenges. On February 24, 2026, President Trump replaced the previous International Economic Emergency Powers Act (IEEPA) tariffs with tariffs imposed under Section 122 of the Trade Act of 1974, commonly referred to as Balance of Payments tariffs.
On May 6, 2026, the U.S. Court of International Trade ruled against those Section 122 tariffs in a case brought by the State of Washington and several small business plaintiffs. As of this writing, the Trump administration is expected to appeal the decision, which currently applies only to the plaintiffs involved in the case.
What your business should be doing now
The pending tariff actions mean companies should review their sourcing strategies and work with a specialist, such as Wipfli, to better understand both their exposure and potential opportunities from the next round of tariffs expected this summer.
Steps you can take now include:
- Know where your goods are coming from: Identify any goods coming from the 16 economies in the proposed Section 301 tariffs. Begin communicating with your customers about potential tariff costs now so they have time to plan. Also, have a plan in place to adjust your pricing as needed if the tariffs are implemented.
- Identify alternative suppliers: Are there vendors you can work with outside of the impacted countries? Start building a list of backup suppliers now.
- Get the right tools in place: As you’ve seen over the last year, tariff rates can change suddenly. Do you have the tools to track those changes or the amount of tariffs your business has paid?
How Wipfli can help
We help manufacturers navigate the ever-changing tariff landscape. Wipfli also offers a wealth of knowledge about taxes, performance, technology and growth. Let’s talk about the challenges you face and how we can help your business adapt to meet the moment. Start a conversation.
Let’s prepare your business for tariff uncertainty
