Trump Prepares a New Tariff Wave as the Temporary 10% Global Levy Expires July 24

Trump Prepares a New Tariff Wave as the Temporary 10% Global Levy Expires July 24

Published July 22, 2026 · Finance-Solutes.com Research Desk

The Trump administration is preparing to announce a fresh round of tariffs on dozens of countries — potentially covering as many as 60 economies — as soon as this week, according to a Financial Times report. The timing is no accident: the temporary 10% global import tariff that has underpinned Washington’s trade regime for the past five months is set to expire on July 24, 2026, and the White House is moving quickly to make sure no gap opens up in its tariff wall.

According to the report, the administration is weighing whether to keep the baseline rate at 10% for most countries or lift it to a range of 10%–12.5% for a subset of trading partners. Either way, the message from Washington is clear — tariffs are not going away when the current levy lapses. They are simply changing legal clothes.

Why the 10% Global Tariff Is Expiring Now

The expiring measure was never designed to be permanent. Earlier this year, the US Supreme Court struck down the legal basis for a set of sweeping “reciprocal” tariffs that President Trump had imposed using emergency powers under the International Emergency Economic Powers Act (IEEPA). In response, the administration pivoted to Section 122 of the Trade Act of 1974 — a rarely used balance-of-payments provision — to impose a flat 10% duty on imports from virtually all trading partners.

Section 122 comes with a built-in fuse, however: tariffs imposed under it are limited to 150 days without congressional approval. That clock runs out at 12:01 a.m. on July 24. Rather than let the levy lapse, the White House has spent months building a more durable replacement.

Section 301: The New Legal Engine Behind US Tariffs

The administration’s chosen tool is Section 301 of the Trade Act of 1974, which allows the president to impose tariffs in response to trade practices deemed unfair or discriminatory toward US commerce. Unlike Section 122, Section 301 duties carry no expiration date and have survived decades of legal challenges — making them far harder for courts to strike down.

Two parallel investigation tracks are driving the new tariff program:

• Forced labor: The US Trade Representative (USTR) has drafted proposals to impose duties of 10% or 12.5% on roughly 60 countries and regions — including China, Japan, South Korea, India, EU members, and multiple Southeast Asian economies — on the grounds that they have not done enough to block goods produced with forced labor from circulating in trade. This track is expected to move first, potentially before the July 24 deadline.
• Excess manufacturing capacity: A separate USTR probe is examining whether 15 countries plus the European Union — including China, India, Vietnam, Japan, South Korea, Mexico, and Thailand — maintain “structural excess capacity” in manufacturing that burdens US commerce. This investigation is still pending, and tariffs from it are not expected by July 24.

US Trade Representative Jamieson Greer signaled on Tuesday that new duties are imminent, telling CNBC the administration expects “action soon,” while declining to give a precise timeline pending briefings to Congress.

Canada and Brazil Show the Playbook in Action

The coming announcement builds on a rapid expansion of trade measures in recent weeks — and two cases show just how aggressively Washington is now using its full legal toolkit:

• Canada — 50% tariffs: On Monday, President Trump signed proclamations imposing additional 50% tariffs on a wide range of Canadian goods — from wine and dairy to hockey sticks and cement — citing Canada’s “discriminatory” retaliation against US autos, alcohol, and dairy products. Notably, these were issued under Section 338 of the Tariff Act of 1930, a largely untested provision, and take effect August 19. Energy, potash, critical minerals, and goods already covered by sector-specific tariffs are exempt — but the duties apply even to products covered by the USMCA free trade agreement.
• Brazil — 25% tariffs: The first country-specific Section 301 action was finalized on July 15 and took effect July 22, imposing 25% duties on Brazilian imports. Washington cited Brazilian court orders forcing X, Meta, and Google to remove political content, along with ethanol tariffs and deforestation concerns. Key consumer goods such as coffee and beef are exempt, but the Brazilian government estimates roughly $7.4 billion in exports are affected, and President Lula has hinted at retaliation.

The Political and Economic Stakes

Not everyone inside the White House is comfortable with the escalation. According to the Financial Times, some advisers have warned that broadening tariffs could raise costs for American consumers and add economic pressure ahead of the midterm elections — a concern amplified by the fact that oil prices are already elevated due to the ongoing conflict with Iran.

There is also a practical wrinkle: because the Section 301 replacement tariffs require an administrative record, public comments, and formal rulemaking, implementation could lag the July 24 expiration by days or even weeks — creating a brief window in which some imports face no replacement duty at all. For importers, that gap could matter; for markets, it adds another layer of near-term uncertainty.

The cumulative effect is significant. The new Section 301 duties would stack on top of existing most-favored-nation rates, earlier China-specific Section 301 tariffs, and Section 232 national-security tariffs on steel and aluminum. For goods in the 12.5% tier, the total tariff burden could in many cases exceed what importers paid under the expiring universal levy.

Investor takeaway: The shift from Section 122 to Section 301 is not cosmetic — it converts a temporary, court-vulnerable tariff into a durable, legally hardened one. Sectors with deep import exposure (retail, autos, consumer electronics) face renewed cost pressure, while the two-tier 10%/12.5% structure rewards countries that struck bilateral deals with Washington. Watch for the official announcement before July 24, any implementation gap, and retaliation signals from Canada, Brazil, and the EU. Tariff-driven inflation risk also complicates the Federal Reserve’s rate path heading into the fall.

What to Watch Next

• July 24: Expiration of the temporary 10% global tariff at 12:01 a.m. — and whether replacement duties are announced before or after the deadline.
• The final country list and rates: Which economies land in the 10% tier versus the 12.5% tier, and whether the EU, India, and Southeast Asian exporters are hit as reported.
• The overcapacity probe: USTR’s pending investigation into 15 countries plus the EU could produce a second wave of tariffs later this year.
• Retaliation risk: Responses from Canada (August 19 effective date), Brazil, and other targeted partners could escalate into broader trade friction.
• Legal challenges: The untested Section 338 tariffs on Canada, in particular, may face court scrutiny.

Note: Tariff announcements, country lists, and rates were still being finalized at the time of writing and may change quickly. Please verify the latest official USTR and White House announcements before publication and before making any trading decisions based on this article.

Disclaimer: This article is for informational and educational purposes only and does not constitute financial or investment advice. Trade policy can shift rapidly, and details such as tariff rates and effective dates should always be checked against official announcements before making any investment decision. For personalized guidance, Finance-Solutes.com’s free courses and expert advisors are available to help you translate policy developments like these into a strategy that fits your own portfolio.

Sources: Financial Times, Bloomberg, CNBC, Reuters, Office of the US Trade Representative

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