US Proposes 12.5% Tariff on Chinese Goods Under Section 301

US Proposes 12.5% Tariff

The new tariffs, effective July 24, 2026, target 60 countries including China and aim to replace temporary duties, escalating trade tensions.

 The move, which imposes a 12.5% tariff on Chinese goods, replaces a temporary 10% import surcharge that expired overnight.

New Tariffs Take Effect Immediately

The tariffs, enacted under Section 301 of the Trade Act of 1974, went into effect at 12:01 a.m. EST on July 24.

While China and 43 other countries, including Japan, South Korea, and Australia, face the higher 12.5% duty, at least 17 trade partners—including Canada, the European Union, Mexico, and the UK—will face a 10% duty.

China Responds Firmly

China’s Ministry of Commerce has strongly opposed the unilateral tariff measures, urging the US to remove them. “We urge the US to correct its wrongdoings and revoke all relevant unilateral tariff measures,” the spokesperson said.

Impact on Global Trade and Consumers

Economists warn the new tariffs will add uncertainty to global trade and disrupt international supply chains. Tom Fullerton, an economist at the University of Texas at El Paso, warned that lower-income US consumers will face the biggest consequences, as they purchase more goods produced in or containing components from China.