In July 2026, the Office of the U.S. Trade Representative announced new Section 301 measures affecting imports from 60 economies. For manufacturers and procurement teams who thought the tariff environment had stabilized after the IEEPA ruling earlier this year, this is a significant development that changes the cost calculation on a wide range of sourcing decisions.
Here is what changed, who it affects, and what to do about it right now.
What the New Section 301 Measures Actually Cover
The new measures impose additional duties ranging from 10% to 12.5% depending on the country and product classification. Countries receiving a 10% tariff treatment include Canada, Mexico, India, Indonesia, Malaysia, the United Kingdom, Pakistan, Bangladesh, Cambodia, Sri Lanka, and several others. Countries including China, Vietnam, Thailand, Brazil, Australia, and South Africa are generally subject to a 12.5% tariff treatment.
This is on top of existing tariff structures. Manufacturers who were already navigating Section 232 duties on steel, aluminum, and copper now have Section 301 measures layered on top across a much broader range of product categories. The cumulative effect on landed costs is substantial, and companies that have not yet modeled the full impact of the combined tariff load are likely underestimating their actual exposure.
Why This Matters More Than the IEEPA Conversation
When the Supreme Court struck down IEEPA as a valid basis for tariffs earlier this year, some manufacturers assumed the tariff pressure would ease. What has happened instead is a transition from IEEPA-based tariffs to a framework increasingly driven by Section 232 and Section 301 actions. These are more legally durable authorities. Section 301 tariffs on China from 2018 survived multiple legal challenges and remain fully in force. The new July measures follow the same legal framework, which means they are built to last.
Thomson Reuters’ Global Trade Report 2026 confirmed that tariff-related disruptions have shifted strategic priorities across the industry, turning routine supply chain optimization into broader questions of systemic resilience. More than three-quarters of trade professionals now believe the new U.S. tariff approach represents a permanent shift rather than a temporary measure. Planning around tariff uncertainty is no longer a short-term exercise. It is a core procurement competency.
What Procurement Teams Should Do Right Now
Three actions matter most in the current environment. First, model your total tariff exposure across all sourcing geographies under the new Section 301 framework, not just your primary suppliers. Second, identify which product categories have the most viable alternative sourcing options in countries with lower tariff exposure. Third, accelerate qualification of alternative suppliers now, before the next round of investigations concludes and additional measures are announced.
The Section 301 overcapacity investigations launched in March 2026 targeting 16 countries are still working through the public comment and hearing process. Additional tariff actions from those investigations are expected in late 2026. Manufacturers who wait for those outcomes before adjusting their sourcing strategy will be responding to a finalized policy rather than shaping their supply chain ahead of it.
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