Why It Matters
The U.S. Trade Representative (USTR) may use findings from two Section 301 investigations it opened after the Supreme Court invalidated tariffs based on the International Emergency Economic Powers Act (IEEPA) in February. The intent was to impose a country-specific tariff regime similar in scope to the 2025 IEEPA tariffs, according to a new Congressional Research Service (CRS) report. Four of those six investigations remain ongoing; two concluded in June with tariff actions finalized in July. The question before Congress is whether simultaneously investigating dozens of trading partners fits the authority Congress originally delegated.
The Big Picture
From the World Trade Organization's establishment in 1995 until the first Trump administration, the United States used Section 301 primarily to build cases and pursue WTO dispute settlement.
On February 20, the Supreme Court issued its opinion in Learning Resources, Inc. v. Trump, which addresses whether the International Emergency Economic Powers Act (IEEPA) authorizes the President to impose tariffs. Following that ruling, USTR initiated two Section 301 investigations in March on an "accelerated timeframe" into structural excess capacity across 16 economies and forced-labor import-ban enforcement across 60 economies.
The six investigations break down as follows:
- Brazil, various trade practices (July 2025): concluded June; 25% tariff with exemptions imposed July.
- China, Phase One agreement implementation (October 2025): ongoing.
- 16 economies, structural excess capacity (March): ongoing.
- 60 economies, forced-labor import bans (March): concluded June 2026; 10%-12.5% tariffs finalized July.
- Vietnam, intellectual property protection (May): ongoing.
- Germany, pharmaceutical underpayment (June): ongoing.
Section 301 does not specify a tariff exclusion process, and actions terminate after four years unless USTR receives a continuation request and conducts a review. H.R.2665 and S.1272, both titled the Trade Review Act of 2025, would require congressional notification and review of tariffs. Both were referred to committee, with their latest recorded actions in April 2025 and no action since.
The Bottom Line
Four investigations remain ongoing, including the excess-capacity investigation covering 16 economies and the China Phase One investigation, and USTR may use the findings of its March investigations to impose a country-specific tariff regime similar in scope to the global tariffs imposed under the International Emergency Economic Powers Act in 2025. USTR's second four-year review of China Section 301 tariff actions, initiated May 6, is also underway with no completion date stated in the CRS report.
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