The action followed separate investigations into what USTR determined were unreasonable acts, policies and practices that burdened U.S. commerce. USTR said the investigated economies had either not prohibited imports produced with forced labor or had not effectively enforced such a prohibition. Several trading partners disputed those findings, Reuters reported.

Under the final USTR action, imports from Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago and the United Kingdom are subject to an additional 10% duty unless exempt.

For the European Union and Taiwan, the Section 301 duty is calculated so the combined most-favored-nation and Section 301 rate totals 10%. The corresponding combined rate is 12.5% for Japan, South Korea and Switzerland. Imports from the other investigated economies are subject to a 12.5% Section 301 duty unless exempt.

The implementing notice exempts designated products, donations, informational materials, accompanied baggage and products already covered by specified Section 232 tariffs. Canadian and Mexican products entered free of duty under the United States-Mexico-Canada Agreement are also exempt from this particular Section 301 action.

A limited transit exception applies to goods loaded onto a vessel at the port of loading and in transit on their final mode of transportation before the July 24 effective time, provided they are entered or withdrawn from warehouse before 12:01 a.m. Eastern time July 28.

Canadian Tariffs Include Paint and Related Products

President Donald Trump signed three proclamations July 20 imposing additional 50% tariffs on separate groups of Canadian products. The White House said the measures respond to Canadian policies involving U.S. motor vehicles, alcoholic beverages and dairy products.

The additional duties take effect at 12:01 a.m. Eastern time Aug. 19 and apply to covered products regardless of whether they otherwise qualify for preferential USMCA treatment. Products already subject to Section 232 duties and certain other categories are excluded, according to the White House fact sheet.

The motor-vehicle proclamation and tariff schedule include several classifications directly connected to coatings and construction materials:

• HTSUS 3208.90.00: Certain paints and varnishes based on synthetic polymers or chemically modified natural polymers in a nonaqueous medium
• HTSUS 3214.90.50: Nonrefractory surfacing preparations for facades, indoor walls, floors, ceilings or similar applications that are not based on rubber
• HTSUS 3215.19.90: Printing ink that is neither black nor solid
• HTSUS 2523.29.00: Portland cement other than white cement, whether or not colored

The Canadian measures cover nearly $20 billion in trade, representing approximately 5.2% of U.S. imports from Canada in 2025, according to USTR figures reported by Reuters. Canadian Prime Minister Mark Carney said Canada would intensify negotiations with the United States and consider its response options.

Aluminum Proclamation Creates Investment-Linked Benefit

A separate July 20 proclamation directs the Commerce Department to establish a program encouraging investment in U.S. primary aluminum production.

Companies may submit plans to build, expand or refurbish U.S. primary aluminum facilities. Approved plans must include a commitment to begin construction by Jan. 20, 2029.

Under the proclamation, a company with an approved plan may import an annual quantity of primary aluminum corresponding to the project’s anticipated annual output at half the otherwise applicable Section 232 tariff rate. Benefits for refurbishment projects are limited according to the value of the investment.

The proclamation does not reduce the generally applicable aluminum tariff rate. It creates a conditional benefit for companies whose plans receive Commerce Department approval and remain in compliance with their commitments.

Brazil Tariffs Take Effect

A 25% Section 301 tariff on Brazilian imports took effect July 22. USTR announced the action July 15 after determining that certain Brazilian policies involving digital trade, electronic payment services, tariffs, anti-corruption enforcement, intellectual property, ethanol market access and illegal deforestation were unreasonable or burdened U.S. commerce.

The final USTR notice applies the tariff to Brazilian goods unless they fall within listed exemptions. Excluded categories include specified raw materials, products already covered by Section 232 duties and products USTR determined could create supply disruptions or could not be obtained in sufficient quantities elsewhere.

Covered Brazilian goods are also subject to the new 12.5% forced-labor-related Section 301 duty beginning July 24 unless exempt. Reuters reported that Brazilian Trade Minister Fernando Haddad said certain footwear, machinery and equipment would be subject to both actions, while pulp would face only the 12.5% duty. He said approximately 2,000 Brazilian products were exempt from both.

Brazil’s government called the forced-labor-related action “arbitrary and unjustified” and said it would consider action under its reciprocity law and at the World Trade Organization, according to Reuters.

Jordan Agreement and Mexico Talks Advance

The United States and Jordan signed an Agreement on Reciprocal Trade July 21. Jordan committed to prohibit imports produced with forced labor within five years, among other trade commitments. That commitment was one factor USTRSTR cited in placing Jordan in the 10% Section 301 group.

The agreement builds on the existing U.S.-Jordan Free Trade Agreement, under which nearly all U.S. goods already receive duty-free access to Jordan. The agreement does not eliminate the new U.S. Section 301 tariff on nonexempt Jordanian goods.

U.S. and Mexican officials also completed a third negotiating round connected to the USMCA review. Discussions covered economic security, labor, agriculture, electronic payment services, steel and aluminum products and automobiles. The joint statement did not announce new tariffs. A fourth round is scheduled for September.

Generic-Drug Tariff Proposal Is Not Yet Implemented

Trump proposed on social media that generic-drug manufacturers produce medicines in the United States or face tariffs of 100% beginning in August 2028 and 200% the following year, Reuters reported.

No proclamation, Federal Register notice or tariff schedule implementing those proposed rates was issued during the reporting period.

The operative April 2 pharmaceutical proclamation specifically exempts generic pharmaceuticals and their associated ingredients from Section 232 tariffs at this time. That proclamation separately establishes tariffs on patented pharmaceuticals, with initial effective dates of July 31 for listed companies and Sept. 29 for other companies. Those duties include a 100% baseline rate and lower or zero rates for specified countries, approved onshoring plans, designated products and qualifying company agreements.

Additional Investigation Remains Pending

USTR is separately conducting Section 301 investigations into policies associated with structural excess manufacturing capacity. The investigations were initiated in March. No final tariff rates or implementation date for those investigations were announced during the July 20-24 reporting period.

For coatings manufacturers and suppliers, the applicable duty cannot be determined from a country-level headline rate alone. Country of origin, exact HTSUS classification, USMCA eligibility, Section 232 coverage and product-specific exclusions can each change the result.

The American Coatings Association has previously identified Canada and Mexico as the largest U.S. coatings trade partners and noted that some coatings raw materials have limited alternative sources. The American Chemistry Council has also described the chemical supply chains of the three USMCA countries as highly integrated.

For coatings companies, tariff exposure is product-specific: origin, HTSUS classification, USMCA eligibility and overlap with Section 232 or listed exclusions determine whether an additional duty applies. Earlier PCI reporting examined how tariffs can affect chemical and coatings supply chains.