President Trump renewed his extreme tariff threat strategy, vowing immediate 100% import tariffs on all products from any E.U. countries that impose digital taxes on U.S. companies. Although the E.U. just confirmed the trade deal with the U.S., setting tariffs on its imports at 15%, digital services were not addressed in that agreement and remain a point of contention. Unlike last year, however, President Trump has not followed through on aggressive tariff threats. Moreover, with the invalidation of the IEEPA tariffs, it is unclear under what authority he could levy such high duties. As the E.U. has threatened to respond, the situation certainly bears monitoring.
Despite the Administration’s appeal challenging the refund of liquidated entries, Customs and Border Protection (CBP) announced last week that the second phase of the CAPE system will launch on June 29, 2026. Details on the launch of Phase 2 can be found here.
On June 18, the United States Trade Representative (USTR) announced an additional Section 301 Investigation announced last week concerning Germany’s pharmaceutical practices. Details may be found here.
Additionally, data points regarding certain 301 investigations were released last week. The National Taxpayers Union issued a release on the Brazil Section 301 duties, accurately identifying these as a tax on U.S. businesses. The blog also includes a useful link to commentary on the House and Senate Trade Review Acts, which, if enacted, would decisively reclaim Congressional authority over trade. Despite rhetoric and symbolic votes, those bills remain at eight and 13 cosponsors, respectively, highlighting the challenge of fundamentally changing Administration policy through legislation.
Meanwhile, Treasury Secretary Scott Bessent stated in an interview last week what many tariff observers had surmised to be the Administration’s true policy:
"Currently, USTR Ambassador Jamieson Greer is doing studies for Section 301 , and if those studies are successful, and I have no reason to believe they won't be… then the tariff rates are going to go back to exactly where they were."
This statement belies the notion that the ongoing Section 301 investigations are truly objective rather than merely box-checking exercises to reach the pre-ordained outcome of recreating a more legally sound IEEPA regime.
Notwithstanding the above, importers might find it worth noting a summary of existing and potential exclusions in the proposed Section 301 tariffs on Brazil. These exceptions resulted from the tariffs’ negative impacts on market and voting consumer attitudes, both of which continue to trend lower.
Neither consumer nor investor attitudes are likely to improve based on last week’s Personal Consumption Expenditures Index numbers, which indicate that inflation increased to 4.1% due to a spike in fuel prices caused by the conflict with Iran, making a hike in interest rates later this year a possibility. At the same time, the Gross Domestic Product Index grew 2.1% for the first quarter of 2026 compared to .5% for the fourth quarter of 2025, exceeding expectations of 1.6%. While the Administration is formulating tariff policy based on those numbers, also determinative is how investors and voters process them.
Disclaimer: APPA does not make any representations about the completeness, suitability, or adequacy of the information provided during the Office Hours or Trade Talks. Any information provided are intended for general informational purposes only, they do not constitute a recommendation or solicitation to do or omit to do any action and should not be interpreted as legal, regulatory, or compliance advice. You should seek independent advice from qualified professionals before acting on any information provided and/or to evaluate specific regulatory obligations and operational decisions.
Disclaimer from Progressive Trade Consulting: PTC is not a law firm, does not practice law, and does not provide legal advice. The Client should consult legal counsel for any legal matters, including trade compliance. The Importer of Record (IOR) is responsible for complying with customs regulations and managing the import process. This includes obtaining required licenses and permits, classifying and valuing goods correctly, declaring goods accurately, paying duties and taxes, following import rules, and maintaining proper records.