US-China Tariff Update: What's Actually Happening in June 2026

Trade policy between the US and China has shifted significantly over the past several months. This article sets out the key developments factually, based on official government statements and verified reporting, without speculation about outcomes.

Background: Why the Tariff Landscape Changed in February 2026

To understand the current situation, it is necessary to start with a court ruling.

On February 20, 2026, the US Supreme Court ruled, in a six-to-three decision, that President Trump had exceeded his authority in imposing tariffs under the International Emergency Economic Powers Act (IEEPA). This ruling invalidated the "fentanyl tariffs" and "reciprocal tariffs" that had been imposed on Chinese goods under IEEPA authority.

Following the ruling, the Trump administration implemented a temporary 10% import surcharge on all trading partners under Section 122 of the Trade Act of 1974. This Section 122 surcharge is scheduled to expire on July 24, 2026.

Separately, the existing Section 301 tariffs — imposed on Chinese goods between 2018 and 2019 in response to findings of intellectual property theft — were not affected by the Supreme Court ruling. These remain in force.

What USTR Launched in March 2026

Following the Supreme Court ruling, the Office of the US Trade Representative (USTR) initiated two new sets of Section 301 investigations using the legal authority unaffected by the court decision.

Investigation 1 — Industrial Overcapacity (March 12, 2026)
USTR launched Section 301 investigations into 16 economies, including China, the EU, Japan, South Korea, Vietnam, Thailand, Malaysia, Indonesia, and others, on the grounds of alleged structural excess capacity in manufacturing sectors including steel, semiconductors, and automobiles.

Investigation 2 — Forced Labor (March 13, 2026)
USTR launched Section 301 investigations into 60 economies — including China, the EU, India, Mexico, Vietnam, and others — on the grounds that these economies had failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labor.

China's Response: Two Reciprocal Trade Barrier Investigations

China did not respond with immediate counter-tariffs. Instead, it launched a formal reciprocal investigation of its own.

On March 27, 2026 — one day after China's Commerce Minister Wang Wentao met with US Trade Representative Jamieson Greer at the 14th WTO Ministerial Conference in Cameroon — China's Ministry of Commerce (MOFCOM) announced two trade barrier investigations into US practices:

• Investigation 1: US practices and measures that harm global production and supply chains — launched in response to the US Section 301 overcapacity investigation
• Investigation 2: US practices and measures that hinder trade in green products — targeting policies including "Buy American" provisions and subsidy programs that China says restrict Chinese renewable energy exports and may breach WTO rules

MOFCOM stated that it would take corresponding measures based on the findings of these investigations to safeguard China's legitimate rights and interests.

📌 Note: These are formal investigation procedures, not tariff announcements. Under Chinese trade law, they are the required procedural step before any retaliatory trade measures can be formally imposed.

The June 2, 2026 USTR Finding: Proposed Tariffs on 60 Economies

On June 2, 2026, USTR released the findings from its March forced labor investigations and proposed new tariffs.

The key findings and proposals:

• All 60 investigated economies were found to have failed to impose or effectively enforce a prohibition on imports of goods produced with forced labor
• 54 economies were found to have neither imposed nor effectively enforced such a prohibition — proposed tariff rate: 12.5%
• 6 economies (Canada, Ecuador, the EU, Indonesia, Mexico, and Pakistan) have prohibitions but were found not to enforce them effectively — proposed tariff rate: 10%
• China is in the 12.5% group
• Vietnam, India, South Korea, Japan, and Australia are also in the 12.5% group

USTR also proposed a textile mechanism that would allow a certain volume of apparel and textile imports from certain economies to enter the US at a reduced Section 301 tariff rate. No details on the scope of this mechanism have been published yet.

These tariffs are proposed, not yet in effect. The comment period remains open until July 6, 2026. USTR will hold public hearings on July 7, 2026. A final decision will be issued after the hearings.

China's Response to the June 2 Proposal

On June 3, 2026, China's Foreign Ministry spokesperson Mao Ning stated at a regular press briefing that China consistently opposes all forms of unilateral tariff measures, that trade wars and tariff wars serve no party's interests, and that economic and trade issues should be resolved through dialogue and consultation on the basis of equality, respect, and mutual benefit. Mao Ning also stated that China does not have forced labor and opposes using this as a pretext for political manipulation.

On the same day, MOFCOM spokesperson He Yongqian stated that China's position on the Section 301 investigation has been consistent, and urged the US to meet China halfway and maintain steady bilateral economic and trade relations.

As of the date of publication, China has not announced any new retaliatory tariffs in response to the June 2 proposal.

Current Effective Tariff Rates on Chinese Bags Entering the US

The following reflects rates currently in effect as of June 4, 2026, based on official sources. Rates are applied additively:

Key Dates Ahead