Following the U.S. Trade Representative's March 12 announcement of Section 301 probes into 60 countries for failing to block forced labour goods, South African exporters are voicing concerns over potential new tariffs. The move aims to sustain trade restrictions as Section 122 emergency duties near expiry.
The U.S. investigation, targeting nations including South Africa, seeks to evaluate efforts to prevent imports of goods produced through forced labour. This follows the Trump administration's response to a February U.S. Supreme Court ruling that curtailed presidential tariff powers under emergency laws, leading to the imposition—and impending expiry—of Section 122 tariffs.
International trade lawyer Kholofelo Kugler highlighted the probe's timing: Section 122 tariffs, imposing a 10% duty on imports from all countries, took effect on February 24, 2026, and are set to expire 150 days later, at midnight on July 24, 2026. "These investigations seek to counteract the expiry of those Section 122 tariffs," she explained.
South Africa had anticipated improved trade ties under the tariffs, but the probe introduces uncertainty for exporters and underscores U.S. efforts to shield domestic industries from perceived unfair competition linked to forced labour.
This development aligns with broader U.S. actions, including separate Section 301 inquiries into excess capacity in countries like South Korea, China, and Japan.
