U.S. Global 10% Temporary Tariff Expires as Asia Faces New Round of Tariff Hikes
Taylor Wilson
The 10% temporary tariff the U.S. imposed under Section 122 expires this Friday, but the administration has already activated Section 301 to build a new tariff regime with no time limit and no rate cap — for Asian exporters, uncertainty is not ending but escalating.
Why is the temporary tariff expiring?
In February, the U.S. Supreme Court ruled Trump's broad "reciprocal" emergency tariffs unconstitutional.
Within hours, the White House pivoted to Section 122 of the Trade Act — a provision allowing temporary presidential tariffs — and imposed a blanket 10% levy on all imports.
This means → extending that tariff requires congressional approval, which analysts see as highly unlikely. Friday's expiration is all but certain.
Does that mean tariffs are going away?
Not at all. The administration has invoked Section 301, proposing new tariffs of at least 10% on 60 trading partners, citing inadequate enforcement against forced labor.
U.S. Trade Representative Jamieson Greer said Tuesday that final enforcement of the forced-labor probe is "imminent" and that "action is expected soon."
In plain terms = the legal tool is changing, but the tariffs are not stopping — if anything, the scope is wider.
How is Section 301 different from the temporary tariff?
Section 122 had a 150-day clock and expired automatically. Section 301 has no time limit and no rate ceiling.
Jeff Moon, former assistant U.S. Trade Representative, warned: "We are entering a more dangerous phase" — the new tariffs are uncapped in both duration and rate, and Trump's threats have grown "more frequent, unpredictable, and harder to control."
Trade lawyer Dave Townsend noted that while the proposed Section 301 cap is 12.5%, final investigation findings could push rates higher.
This means → the policy uncertainty facing Asian exporters is not shrinking — it is structurally amplified.
What other trade actions are in play?
The U.S. is investigating whether more than a dozen partners — including China and Japan — maintain excess capacity that undercuts global prices and harms American manufacturers.
On Monday, the U.S. invoked Section 338 to impose a 50% tariff on select Canadian goods.
Brazil has already been hit with a 25% tariff under Section 301.
This reflects a White House strategy of deploying multiple legal tools simultaneously, applying differentiated tariff pressure country by country.
How much damage is already showing up?
Tariff uncertainty has driven U.S. importers into front-loading mode: trans-Pacific freight rates rose in June, and the National Retail Federation projects July imports will hit a record high.
Roughly one-third of surveyed small businesses say they have already laid off workers because of tariffs; 40% of owners have dipped into personal savings to cover the cost gap.
In plain terms = the cost of tariffs is already visible across the chain — from shipping rates to jobs — and the new regime means that cost will persist far longer.
Content is for reference only, not financial advice.