US Treasury Secretary Scott Bessent announced that tariff rates will return to their previous levels once a Section 301 review currently underway is completed. According to reports from CNBC's Squawk Box, Bessent called the Supreme Court's decision invalidating tariffs imposed under the International Emergency Economic Powers Act (IEEPA) 'unfortunate', noting that IEEPA had been 'a very efficient way to put on tariffs'. Speaking to CNBC, Bessent emphasized that the administration had 'rebooted' its tariff programme after initially relying on IEEPA to impose duties swiftly. As reported by CNBC, Bessent indicated that he has 'no reason to believe' the Section 301 studies will not be successful, though the outcome remains uncertain until the studies are completed.
The administration has rebooted the tariff program with Section 122 tariffs, which currently impose a 10% global tariff. As reported by CNBC, USTR Ambassador Jamieson Greer is conducting studies for Section 301, and if these studies are successful, tariff rates will return to exactly where they were previously. According to Bessent's latest statements to CNBC, the department projects only a 'de minimis decline' in tariff revenue during calendar year 2026, assuming the Section 301 investigations proceed as expected. This indicates the administration intends to preserve much of its tariff framework even after shifting away from emergency powers. Under US law, Section 122 tariffs can remain in force for a maximum of 150 days, with the current measures set to expire on July 24.
Bessent emphasized that using IEEPA in 2025 had allowed the administration to quickly reach trade deals it would not otherwise have secured. According to the Treasury Secretary's statements to CNBC, the European Union is expected to pay 15% while charging the US zero, with the bloc also lowering non-tariff trade barriers and 'unfair financing practices'. Bessent cited the European Union as an example of what he described as a successful rebalancing of trade ties, saying the bloc would levy zero tariffs on US goods while paying a 15% tariff on its exports to the US. Similar rebalancing is reportedly underway with Japan, South Korea and China.
Bessent's remarks are particularly significant for India, which faces a proposed additional 12.5% tariff under the Trump administration's Section 301 action targeting economies the US says have failed to effectively prohibit imports made with forced labour. Public hearings on this proposal are due to begin on July 7. The comments come as Washington and New Delhi continue negotiations on the first tranche of a bilateral trade agreement; US Trade Representative Jamieson Greer met with Commerce Minister Piyush Goyal in New Delhi earlier this week. India and the United States had announced a trade pact in February this year under which tariffs on Indian exports were reduced from 50% to 18%. However, the US Supreme Court ruled that the reciprocal tariffs introduced by the Trump administration were unlawful, and shortly thereafter, President Trump imposed a universal 10% tariff that is scheduled to lapse next month. As Commerce Minister Piyush Goyal noted, 'We have to have some reason to be able to enter into force the agreement that we have and to ensure that we get a competitive advantage over countries in the same stage of development or same cost structures as India'. Countries wishing to challenge the proposed duties can submit requests until June 22, 2026, with written submissions accepted until July 6.
