In brief
The result of the US Supreme Court ruling which struck down the tariffs imposed by the US Administration under the International Emergency Economic Powers Act (IEEPA) removed one key instrument from President Trump’s tariff toolbox. Against this backdrop, President Trump has sought to rely on new legal authorities to continue his tariff agenda.
In particular, this includes the imposition of new 10% global tariffs under Section 122 of the Trade Act of 1974 (the Trade Act) as well as the launch of a significant number of investigations under Section 301 of the Trade Act to consider if tariffs are necessary as an outcome.
In detail
Section 122 temporary 10% tariff
In response to the removal of the IEEPA tariffs, President Trump signed a proclamation imposing a temporary 10% tariff on most global merchandise imported into the United States under Section 122 of the Trade Act, which allows for duties for up to 150 days to correct serious “balance of payment deficits.”
These new tariffs have been in place since 24 February 2026 and will remain in place until 24 July 2026, unless extended by an act of Congress.
Other investigations and tariffs
Given that Sections 301 and 232 of the Trade Act are provisions in respect of which President Trump’s authority is clearly delegated from Congress and will therefore be harder to challenge the legality of, the US Administration has placed greater reliance on making use of these tools to increase and / or introduce new tariffs.
In particular, the Office of the United States Trade Representative (USTR) has launched several new Section 301 investigations, including:
- On 11 March 2026 an investigation launched into structural excess manufacturing capacity in 16 economies, including China, the EU, Japan, and India. Targeted sectors include steel, semiconductors, automotive, chemicals, and batteries. The probe focuses on government policies like subsidies and wage suppression contributing to overproduction and trade surpluses. Public comments were due by 15 April 2026, with hearings planned for 5 May 2026.
- On 12 March 2026 an investigation launched on forced labour import bans involving 60 major trading partners, such as China, the EU, and Mexico. The investigation reviews whether these countries effectively prohibit imports of goods made with forced labour, potentially imposing tariffs or restrictions. Comment submissions were due by 15 April 2026, with hearings started on 28 April 2026.
In general, Section 301 investigations can take up to a year to complete. However, in respect of the above, indications are that there will be accelerated timeframes for the investigations, with an unofficial target to be concluded by July 2026.
Additionally, the Bureau of Industry and Security (BIS) also has a number of active Section 232 investigations in place, including, amongst others, robotics and industrial machinery, processed critical minerals, copper, polysilicon.
In addition to the Section 232 tariffs which are currently in place in respect of steel, aluminium and automobile imports into the US, new tariffs under this authority were introduced on 2 April 2026 in respect of pharmaceuticals and pharmaceutical ingredients. These new tariffs impose a maximum 100% tariff on imported patented pharmaceuticals, while companies with approved onshoring plans face a reduced tariff of 20%. Generic drugs remain tariff-exempt. Tariff rates vary under current trade agreements with key partners, and negotiations on import adjustments will continue.
President Trump may impose tariffs on covered merchandise and derivative products once the Section 232 and 301 investigations are completed.
What comes next?
The removal of the IEEPA tariffs has not simplified trade into the US. There are however steps that US traders can take to reduce exposure and manage risk. In particular:
- Businesses should ensure that trade contracts clearly articulate tariff risk, both in respect of incoterms but also pricing.
- Businesses should closely monitor USTR announcements and Federal Register notices for potential changes in US trade policy.
- Given that trade investigations under Sections 232 and 301 and public and consultative, there is scope for industry engagement and therefore the ability to consider any changes to trade / supply chain arrangements in advance of any tariffs being formalised and in force.
Contact us
If you would like to further discuss this alert, reach out to our team or your PwC adviser.
Paul Cornick
Partner, Global Trade, PwC Australia
Gary Dutton
Partner, National Global Trade Leader, PwC Australia
Frances Ryan
Director, Global Trade, PwC Australia
Sarah Macchiavelli
Director, Global Trade, PwC Australia
Melissa Camilleri
Director, Global Trade, PwC Australia
Lara Jobling
Director, Global Trade, PwC Australia
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