Firms oppose new U.S. Section 301 tariffs
Companies including Delta, Dell, Caterpillar, Ford and Jockey publicly warned against proposed new U.S. Section 301 tariffs, saying they would disrupt supply chains and raise costs. Parliamentary and policy briefs note tariffs are already shaping sourcing choices and inventory planning even before direct cost hits appear on P&Ls (timesofindia.indiatimes.com; commonslibrary.parliament.uk).
Large U.S. companies are publicly pushing back on new Section 301 tariff plans, warning the duties would raise costs and disrupt supply chains. (ustr.gov; timesofindia.indiatimes.com) The Office of the United States Trade Representative opened two new Section 301 investigations on March 11 and March 12, 2026, covering structural excess capacity in manufacturing and failures to enforce forced-labor import bans. The agency opened comment dockets on March 17, set April 15 for initial submissions, and scheduled hearings starting May 5 at the U.S. International Trade Commission. (ustr.gov; federalregister.gov) Delta, Dell, Caterpillar, Ford and Jockey were among the companies cited in public opposition filed during that process. Dell said other policy tools could support reshoring “without rapidly increasing production and end-user costs,” while Jockey said broad apparel tariffs would add inflation pressure instead of bringing back mass U.S. clothing production. (timesofindia.indiatimes.com) Section 301 is the trade law the United States uses to investigate foreign government practices it says are unfair and harmful to U.S. commerce. If the United States Trade Representative makes that finding, it can impose tariffs or other trade restrictions after consultations and an administrative process. (ustr.gov; brookings.edu) This round is broader than the earlier China-focused Section 301 cases. The manufacturing-capacity investigation names 16 economies: China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan and India. (federalregister.gov; ustr.gov) Business groups are arguing that companies are already changing behavior before any new tariff bill shows up in earnings. The House of Commons Library said tariffs and retaliation have created a “much more uncertain outlook for world trade,” while KPMG’s U.S. survey work found companies adjusting sourcing and inventory plans to limit tariff exposure. (commonslibrary.parliament.uk; kpmg.com) Some industries say the problem is not just one new duty, but several layers at once. Cummins and other groups warned about “tariff stacking,” and the Times of India report said companies also pointed to the Trump administration’s April 2 changes to Section 232 steel, aluminum and copper tariffs as another cost increase hitting imported inputs. (timesofindia.indiatimes.com; taxnews.ey.com) The administration is making the opposite case. U.S. Trade Representative Jamieson Greer said the investigations are meant to address foreign overproduction that “burden[s] or restrict[s] U.S. commerce” and to support reshoring in American manufacturing. (ustr.gov) The next test is the hearing room, not the earnings call. Companies and trade groups have now put their objections into the record, and USTR’s decisions after the May hearings will show how much of that pushback changes the final tariff plan. (federalregister.gov; brookings.edu)
