A coalition of 22 Democratic state attorneys general and multiple foreign governments are challenging the Trump administration's proposed Section 301 tariffs of up to 12.5% on 60 trading partners. Opponents argue the forced labor and digital trade investigations are unlawful pretexts to rebuild sweeping tariffs struck down by the Supreme Court in February 2026. Meanwhile, U.S. lawmakers are pushing for trade probes into Canadian liquor restrictions, and U.K. businesses fear trade envoy turnover.
Forced labor tariff investigations
- ▪The Office of the U.S. Trade Representative stated that the proposed forced labor tariffs on 60 economies will cover 99.4% of goods imported to the United States
- ▪The Trump administration proposed 25% tariffs on Brazil following a Section 301 investigation into digital trade, electronic payments, and other regulatory issues
- ▪The Trump administration proposed tariffs of 10% to 12.5% on 60 trading partners following a Section 301 investigation into inaction on forced labor
Foreign government rebuttals
- ▪Brazilian Senator Flávio Bolsonaro urged United States officials to suspend proposed tariffs and open bilateral negotiations on flagged trade issues
- ▪Officials from 16 countries are scheduled to defend their domestic records against proposed forced labor tariffs during a three-day public hearing
- ▪Kazakhstan and Uruguay defended their domestic efforts to combat forced labor in submissions to the Office of the U.S. Trade Representative
Section 301 legal challenges
- ▪The progressive watchdog group Public Citizen challenged the findings on Brazil, accusing the administration of using the investigation to pursue political aims
- ▪The 22 Democratic state attorneys general argued that the Office of the U.S. Trade Representative is abusing Section 301 authority to implement predetermined tariffs
- ▪A group of 22 Democratic state attorneys general opposed the proposed forced labor tariffs, calling them an unlawful pretext to replace invalidated tariffs
Canada liquor import restrictions
- ▪Ontario Premier Doug Ford stated Ontario would allow United States alcohol imports once the Trump administration extends the U.S.-Mexico-Canada Agreement
- ▪Representative Claudia Tenney introduced the CANADA Act to direct a Section 301 investigation into Canadian restrictions on United States alcohol products
U.K. trade envoy uncertainty
- ▪Varun Chandra negotiated a drug-pricing agreement and a trade framework capping tariffs at 10% on many United Kingdom goods
- ▪Businesses expressed concern that the potential departure of Varun Chandra, the United Kingdom's special envoy, could disrupt transatlantic trade relations
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