Trump Administration Proposes New Section 301 Tariffs

by , & · June 5, 2026

On June 1st, President Trump issued a Proclamation to adjust the Section 232 duties on derivative goods made of aluminum, copper, and steel, which are generally set at 50%. Goods that are eligible for preferential treatment under the U.S.-Mexico-Canada Agreement (“CUSMA” or “USMCA”) will be subject to a lower 25% duty rate with respect to the non-U.S. content, with a minimum duty rate of 15% ad valorem. This reduced rate will be in effect from 8 June 2026 through 31 December 2027.

On June 2nd, the Office of the U.S. Trade Representative (“USTR”) issued a Section 301 report that accused Canada of insufficiently enforcing its import ban against forced labor products, which USTR found to burden or restrict U.S. commerce. USTR proposed a 10% tariff on Canadian goods to address this issue, with exemptions for CUSMA/USMCA compliant goods and articles or parts of articles that are subject to Section 232 tariffs. There is an opportunity to submit public comments on this tariff proposal that closes on 6 July 2026.

The Trump Administration’s announcements on U.S. import tariffs that affect Canadian goods are summarized more completely in this Dorsey e-Update.

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T. Augustine Lo

Augustine is a Partner in Dorsey’s National Security Law Practice Group. He advises clients on U.S. customs and international trade law, economic sanctions, export controls, and U.S. Government review of foreign investments. With experience in state and federal court litigation in New York and Seattle, Augustine protects clients’ interests in government enforcement actions and international trade proceedings. Proficient in Mandarin Chinese, he also counsels clients on matters relating to East Asia.

Dave Townsend

Dave is a Partner in the firm's Government Solutions and Investigations Practice Group. Dave focuses on advising clients on international trade and transactions, including U.S. economic sanctions, export controls, customs law, and national-security related matters. He also represents clients in antidumping, countervailing duty, and safeguard proceedings as well as matters involving the World Trade Organization and U.S. free trade agreements.

Larry Ward

As an international business attorney, Larry helps clients navigate complex regulations such as CFIUS, ITAR, EAR, OFAC, FCPA, and other matters involving U.S. national security law and international trade compliance. He helps government contractors, aerospace and defense, mining, technology, manufacturing, retail, service, hospitality, biotech, and other companies involved in international trade understand and comply with various complicated U.S. regulatory schemes in a cost-effective manner so that they can avoid the monetary, criminal, and other penalties and reputational damage faced when those regulations are violated.

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