The United States Trade Representative (USTR) recently replaced the expired Section 122 surcharge with new Section 301 tariffs, citing a failure to enforce forced-labor import bans. For refrigerated trucking executives monitoring import volumes, routes, and freight availability, these tariffs—affecting roughly 99% of U.S. import volume from 60 trading partners—will immediately influence supply chain dynamics for several key refrigerated and frozen commodities.
The following breakdown on potential impacts and challenges comes from a Global Cold Chain Alliance article posted July 24.
The new tariff structure
The tariffs operate on a two-tier system:
- 10% tariff: Applied to countries with a forced-labor import ban (or commitment to one), including the EU, UK, Canada, Mexico, India, and Indonesia.
- 12.5% tariff: Applied to all other targeted nations, including Australia, New Zealand, China, Brazil, Vietnam, and Thailand.
Note: USMCA-qualifying goods and a broad list of specific agricultural products are completely exempt.
Impact by cold chain commodity
Freight networks heavily reliant on ports and cross-border food imports will see varying impacts depending on the commodity:
- Beef: Exempt. Bovine is specifically named in the exemption annex, so current import volumes should remain steady.
- Pork: Not exempt. While Canadian and Mexican pork remains protected via the USMCA, pork from the EU (the No. 2 supplier to the U.S.) will immediately face a 10% tariff.
- Chicken: Not exempt. Key suppliers of cooked and prepared chicken, notably Thailand and Brazil, will face the 12.5% rate.
- Lamb and mutton: Not exempt. Australia and New Zealand, the dominant suppliers to the U.S., face a 12.5% tariff (a 2.5-point increase from the previous baseline).
- Seafood: Unresolved. Shrimp, salmon, and pangasius have no confirmed exemptions. A separate Section 301 probe targeting seafood is open, with a decision expected by Q4.
- Frozen fruits and vegetables: Partially exempt. Fresh tropical items (e.g., bananas, mangoes) are exempt, but standard frozen vegetables and fruits grown domestically are subject to tariffs unless they originate from Canada or Mexico.
Legal and geopolitical outlook for carriers
- High legal vulnerability: This is the administration’s third attempt at broad tariffs this year (the previous two were either struck down by the Supreme Court or expired). Trade lawyers note that using Section 301 as a blanket tariff is unprecedented and legally exposed. Importers are likely to challenge this in the U.S. Court of International Trade, meaning these rates may not survive the year.
- The Canada situation: Separately, the administration announced steep 50% tariffs on select Canadian goods to pressure Ottawa over trade disputes. However, the GCCA views this primarily as a negotiating tactic to accelerate USMCA/CUSMA talks rather than permanent policy.
Bottom line: Refrigerated transporters handling cross-border North American freight (Canada/Mexico) remain largely protected due to USMCA exemptions. However, carriers servicing major ports for imported pork, poultry, and frozen produce should anticipate potential volume shifts and prepare for volatility as importers inevitably challenge these new Section 301 rates in court.
