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Section 122 Tariffs Expire as New Section 301 Tariffs Take Effect

  • 2 days ago
  • 2 min read

At midnight last night, the Section 122 tariffs imposed earlier this year will officially expire.


The 10% Section 122 tariffs were implemented in February after the courts determined that the Administration's tariffs under the International Emergency Economic Powers Act (IEEPA) were unlawful. Under U.S. law, Section 122 tariffs are temporary and may only remain in effect for up to 150 days.


Section 301 Tariffs Begin July 24


Knowing that the Section 122 tariffs were temporary, the Administration began the Section 301 process several months ago.


In June, the Office of the United States Trade Representative (USTR) announced an investigation into approximately 60 countries regarding alleged forced labor concerns. As part of that process, USTR proposed tariffs of either 10% or 12.5%, depending on its findings.


Earlier this month, Christine Boldt, Executive Vice President of the Association of Floral Importers of America (AFIA), testified before the International Trade Commission in Washington, D.C., on behalf of the floral import industry.


During her testimony, she urged the Administration to exempt fresh-cut flowers from any new tariffs, emphasizing that the volume of flowers required by U.S. consumers cannot be produced domestically and that imported flowers are essential to maintaining a stable, affordable supply.


Late this evening, USTR announced that the new Section 301 tariffs will take effect at 12:01 a.m. on July 24, immediately following the expiration of the Section 122 tariffs.


Current Section 301 Tariff Rates

  • Colombia: 12.5%

  • Ecuador: Flowers will be exempt from the additional 10% under section 301. That means that flowers from Ecuador will only have the GSP duty of 6.4 - 6,8%.

  • Costa Rica: 12.5%

  • Guatemala: 10%

  • Canada: 10% (with additional 50% duties scheduled to take effect in August)

  • Mexico: 10%


AFIA will continue monitoring these developments closely and advocating for policies that protect the floral supply chain, American businesses, and consumers. We will keep members informed as additional guidance and implementation details become available.


 
 
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