Government Affairs Insights on Floral

July 24, 2026

Trump Administration announces new Section 301 tariffs to replace the expiring Section 122 tariffs:

As of July 24, the Trump Administration’s 10% global reciprocal tariffs issued using the authority of Section 122 of the Trade Act of 1974 in February officially expired. Initially, President Trump invoked Section 122 to impose 10% global tariffs applying uniformly to all trade partners after the U.S. Supreme Court overturned the President's use of International Emergency Economic Powers Act (IEEPA) for tariff authority under Learning Resources v. Trump. The Section 122 tariffs were intended to be a temporary measure, as the legal authority permits them to remain in effect for only up to 150 days without a formal extension from Congress. On July 23, the Trump Administration and Office of the U.S. Trade Representative (USTR) announced plans to use Section 301 of the Trade Act of 1974 to impose new tariffs on 60 economies for “their failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor.” The tariffs took effect at 12:01 a.m. ET on July 24, as the Section 122 tariffs expired. USTR first initiated a formal investigation back in March 2026 related to the failure of various economies to impose and effectively enforce a prohibition on the importation of goods produced with forced labor, which included two rounds of public hearing, more than 2,100 public comments, and consultations with more than 45 of the governments of the economies subject to the investigations. In general, this action imposes additional tariffs of either 10% or 12.5%, depending on the country, while exempting certain products.

Additionally, President Trump has announced country-specific tariffs on Brazil and Canada within the last two weeks. The U.S. has imposed a 25% tariff on certain imports from Brazil under Section 301 authority, while Section 338 of the Tariff Act of 1930 was used to impose an additional 50% tariff on certain goods from Canada. The tariffs on Brazil took effect on of July 22, whereas the proposed tariffs on Canadian goods are not set to take effect until August 19. Some reporting has speculated that the Administration could be using the threat of the Section 338 tariffs to bring Canada to the USMCA negotiating table.

Here are some important takeaways regarding the new slate of tariffs with respect to the floral industry:

Columbia: 12.5% tariff; Cut flowers are not exempt
Ecuador: 10% tariff; However cut flowers are exempt under the new 301 tariffs
Netherlands: 10% tariff; Existing Most-Favored-Nation (MFN) duties offset part of the new tariff, so the additional duty may be less than 10%
Mexico: USMCA products are exempt, which includes floriculture
Canada: USMCA products are exempt, which includes floriculture

You can find more information regarding the Brazil tariffs here, and the Canada tariffs here. For more information on the Section 301 tariffs, you can find the pre-publican version of the Federal Register Notice here, and USTR’s fact sheet here.

House passes reconciliation 3.0 blueprint and continuing resolution ahead of August recess:

During the week of July 20, the House of Representatives passed both the $95 billion budget resolution framework and a continuing resolution (CR) package on the floor ahead of their 5-week recess. Last Monday, July 20, the House Rules Committee convened to consider a whole host of measures including both the House Budget Committee’s reconciliation 3.0 proposal and a CR that would keep the government funded through December 4 to avoid FY26 funding from lapsing ahead of the September 30 fiscal year deadline. The $95 billion reconciliation proposal includes a $12 billion instruction for the Agriculture Committee to see through divvying up ad hoc assistance for agricultural producers, including for specialty crops which would hopefully include the floriculture sector, facing economic and natural disaster related challenges. The Rules Committee managed to advance a rule to consider both the CR and the reconciliation framework and a handful of other bills on the House floor. On July 22, the House passed H.Con.Res.113 by a 216-214 vote margin with Reps. Thomas Massie (R-KY) and Warren Davidson (R-OH) breaking ranks with Republicans to vote against the Budget Committee’s reconciliation proposal. The House also passed H.R.9770 by a 220-205 margin with Democrat Reps. Kathy Castor (D-FL), Henry Cueller (R-TX), Don Davis (D-NC), Jared Golden (D-ME), Vincente Gonzales (D-TX), and Gabe Vasquez (D-NM) joining ranks with Republicans to advance the CR, and Rep. Thomas Massie (R-KY) as the lone Republican against the stopgap. Before the reconciliation process can proceed any further, the Senate now must introduce and pass a budget resolution of their own. From there, the committees that received reconciliation instructions can hold markups on how they plan to manage the funding within their jurisdiction, including the Agriculture Committee. As of July 23, the House of Representatives officially adjourned for the August recess and will not be back in session until August 31. The Senate is scheduled to remain in session until August 7 unless Senate Republican leadership decides to adjourn early for their 5-week recess.

Trump Administration declines to renew USMCA in current form:

On July 1, U.S. Trade Representative Ambassador Jamieson Greer announced that the Trump Administration will not pursue renewing the U.S.-Mexico-Canada Agreement (USMCA) in its current form at this time. It is worth noting that the existing agreement remains in place until 2036 unless the three countries reach a new agreement otherwise. USMCA was originally set to undergo a formal review process starting this July. Ambassador Greer said the U.S. will continue negotiations with Canada and Mexico to address trade deficits and other shortcomings in the agreement. From a floral lens, it is important to note that floriculture is considered a USMCA compliant product and could be impacted by any future changes to USMCA. While U.S.-Canada trade tensions continue to persist, the U.S. has been continuing its ongoing series of bilateral discussions with Mexico. During the week of July 20, various U.S. stakeholders, including representative from the U.S. Department of Agriculture (USDA) Agricultural Technical Advisory Committees (ATACs), met in Mexico City with Mexico counterparts to continue bilateral negotiations related to seasonality and other agricultural trade concerns. Additional details on the U.S.-Mexico discussions are expected in the coming weeks.

Chairman Boozman releases Senate Ag farm bill text:

On June 23, Senate Committee on Agriculture, Nutrition, and Forestry Chairman John Boozman (R-AR) introduced legislative text for the Agricultural Act of 2026. The Senate Agriculture majority’s farm bill text builds on the House-passed H.R. 7567, the Farm, Food, and National Security Act of 2026, which was approved on April 30. In announcing the release, Chairman Boozman said, “Congress delivered historic improvements to farm programs through the Working Families Tax Cuts, and we’re continuing to expand upon that success with bipartisan priorities that strengthen the American farm economy, increase investments for rural communities and foster a more resilient agricultural sector.” The bill is largely similar to the House version and does not include provisions to overturn California’s Proposition 12, preempt state pesticide laws, authorize E-15 sales, or delay the Supplemental Nutrition Assistance Program (SNAP) state cost share. Provisions beneficial to the floral industry include funding for the Specialty Crop Research Initiative (SCRI), the Plant Pest and Disease Management and Disaster Prevention Program, and a framework for future specialty crop ad hoc assistance that would include floriculture. Senate Agriculture Committee Democrats have raised concerns that the bill “does not address the devastating cuts to SNAP or the shift to state taxpayers passed into law as part of HR.1.” As Committee leadership continues negotiations, no official markup date has been announced, though the Committee could still act before the Senate adjourns for its five[1]week recess on August 7. You can find a link to the Senate’s farm bill text and supporting materials below:

Click HERE for legislative text.
Click HERE for a title-by-title summary.
Click HERE for a section-by-section.
Click HERE for an overview

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