The most compressed tariff week of 2026
If you import goods into the United States, the week of July 21, 2026 is one you cannot afford to watch passively. In the span of four days, three separate tariff events are converging at once: a brand-new 50% Section 338 duty on a wide range of Canadian goods signed Monday, a fresh Section 301 tariff on Brazilian imports activating Wednesday, and the expiry Friday of the 10% global Section 122 surcharge that has sat atop nearly every U.S. import since February. On top of all that, U.S. Trade Representative Jamieson Greer told CNBC's Squawk Box on Tuesday morning that importers should "expect action soon" on still more tariffs targeting dozens of additional countries. This article breaks down each development and tells you what to do before Friday.
The Section 122 global surcharge expires July 24
The 10% across-the-board global surcharge was never meant to be permanent. After the U.S. Supreme Court struck down most of President Trump's original IEEPA "Liberation Day" tariff regime in February 2026, the administration moved quickly to fill the revenue gap. Trump imposed the 10% global duty under Section 122 of the Trade Act of 1974 on February 24, 2026, as an emergency stopgap. Section 122 comes with a hard 150-day statutory clock — and that clock runs out at 12:01 a.m. Eastern time on Friday, July 25. Congress has not acted to extend it, and the president cannot unilaterally renew it under this authority.
For importers, this creates an unusual arithmetic moment. If no replacement tariff is in place by Friday, goods subject only to the Section 122 surcharge would revert to their pre-IEEPA duty rates: MFN plus any standing Section 232 or China-specific Section 301 duties. Section 232 duties on steel (25%), aluminum (25%), copper (25%), lumber (25%), and semiconductors remain firmly in place regardless of what happens to Section 122.
Section 301 forced-labor tariffs: the replacement regime
The administration is not planning to let that gap persist. On June 2, 2026, USTR proposed additional tariffs under Section 301 of the Trade Act of 1974 on imports from 60 economies, finding that each country's failure to impose and effectively enforce a prohibition on goods produced with forced labor constitutes an unreasonable trade practice that burdens U.S. commerce. Public hearings took place July 7 through 9 at the U.S. International Trade Commission.
The proposed rates fall into two tiers. Greer has stated the new levies would range between 10% and 12.5% on countries including Mexico, Taiwan, the United Kingdom, China, Australia, Japan, and Brazil, and that they would cover roughly 99% of U.S. trade. Unlike Section 122, Section 301 carries no statutory time limit and no rate cap, which is precisely why the administration chose this authority to rebuild its tariff framework on what it describes as a more legally durable foundation.
Greer confirmed Tuesday he could not yet specify a finalization timeline, citing obligations to brief Congress and other stakeholders before a formal announcement. Analysts widely expect the new Section 301 regime to activate on or near the same date the Section 122 surcharge disappears — but as of Tuesday afternoon no Federal Register notice had been published.
Canada: 50% Section 338 tariffs take effect August 19
Separate from the Section 301 replacement, President Trump on July 20, 2026 signed three proclamations under Section 338 of the Tariff Act of 1930, imposing an additional 50% duty on specific Canadian goods in response to what the White House describes as discriminatory treatment of American autos, alcohol, and dairy. The effective date is 12:01 a.m. Eastern time on August 19, 2026 — the statutory minimum 30-day notice period.
Three separate proclamations, three separate product lists. Coverage extends well beyond the headline sectors: products including wine, hockey sticks, and cement are among the items covered. Critically, USMCA origin does not provide relief — these tariffs apply to all covered goods regardless of whether a good qualifies for preferential treatment under the U.S.-Mexico-Canada Agreement. Energy, potash, products subject to existing Section 232 tariffs, fish, and certain critical minerals are excluded.
The Canadian Chamber of Commerce called the move "a regrettable escalation" and urged both governments to use the 30-day window to make meaningful progress in formal talks. Prime Minister Carney has characterized the action as a direct violation of USMCA. Legal challenges to Section 338 are expected, given the statute's limited prior use. Importers of Canadian goods should audit their HTS classifications against all three proclamation annexes immediately — do not assume your product is outside scope based on headlines alone.
Brazil and the multi-country Section 301 wave
Also activating this week: a Section 301 tariff on Brazilian imports at 25%, effective 12:01 a.m. Eastern time on Wednesday, July 22, 2026. The administration has also launched trade probes into 16 trading partners over excess industrial capacity, a parallel investigation that analysts expect to produce a second wave of Section 301 tariffs later this year.
The picture is further complicated by Greer's Tuesday signals. He indicated the forced-labor Section 301 action could be announced imminently and would cover the vast majority of U.S. trade — with the European Union, China, Taiwan, Vietnam, and Japan all among the targeted economies. The EU has described tariffs imposed on forced-labor grounds as "unjustified," while China has maintained its opposition to unilateral U.S. trade restrictions.
What this means for your landed cost
The stacking potential here is significant. Consider a shipment of goods from Vietnam that currently pays the 10% Section 122 surcharge on top of MFN rates. If Section 301 finalizes at 12.5% before Friday, the landed-cost arithmetic shifts upward. If it does not finalize by Friday and no bridge measure is in place, there could be a brief window at MFN-only rates — but trade attorneys caution against betting operational decisions on that gap materializing. The administration has consistently moved to avoid tariff revenue shortfalls.
For Canadian-origin goods, importers have until August 19 to either front-load shipments under current duty rates, renegotiate supplier contracts, or seek alternative sourcing. Note that the 30-day window is a hard statutory minimum — there is no indication it will be extended, and negotiations between Ottawa and Washington, while ongoing, have produced no agreement as of this writing.
Total landed cost must now be recalculated for every active import program touching Canada, Brazil, or any of the 60 economies in USTR's forced-labor investigation. That is not a future planning exercise — it is an immediate operational requirement.
How ASR can help
At ASR WorldWide Express, we coordinate closely with our trusted licensed customs broker partners to help importers understand how new duty regimes apply to their specific HTS classifications, plan shipment timing around tariff effective dates, and avoid costly surprises at the port. Whether you are sourcing from Canada, Brazil, Vietnam, or anywhere else in USTR's expanding tariff net, our team in Miami is ready to help you build a clear action plan before Friday's deadline changes the landscape.
Call us at +1 786 373 3003 or email shipping@asrwe.com to speak with a specialist today.
Important disclaimer
This article is for informational purposes only and does not constitute legal, tax, or customs compliance advice. Tariff rules, rates, product scope, and effective dates are subject to change — including by Federal Register notice issued after this article's publication. Importers should consult a licensed customs broker or trade attorney to evaluate how any of the developments described here apply to their specific goods and supply chains.
