Trump administration moves forward with new and modified tariffs
The Trump administration is moving forward with new tariffs and modifications of existing tariffs. On June 2, the Office of U.S. Trade Representative announced new proposed tariffs on imports from 60 trading partners following an investigation into forced-labor practices in those countries. Under the proposal, 10% tariffs would apply to products implicated in forced-labor practices from Canada, Mexico, the United Kingdom, the European Union and other countries (although imports that comply with the U.S.-Mexico-Canada trade agreement would be exempt), and 12.5% tariffs would apply on products from China, India, Japan, Switzerland and other nations. The tariffs are being proposed under the authority of Section 301 of the Trade Act of 1974 and are subject to public comment and hearings before being finalized.
These newly proposed tariffs are ultimately aimed at replacing President Trump’s tariffs issued by Executive Order under the International Emergency Economic Powers Act in April 2025, which were subsequently struck down by the U.S. Supreme Court in February. Once finalized, they also will replace a 10% global tariff issued under Section 122 of the Trade Act of 1974 in February as the initial alternative to the previously nullified 2025 tariffs. The 10% global tariffs are scheduled to sunset as required by law in July, unless Congress were to extend them, which is not expected. Additionally, the February tariffs have been ruled unlawful by the U.S. Court of International Trade, though they remain in effect pending appeal of that litigation.
Also, President Trump issued a proclamation that modifies tariffs on imported steel, aluminum and copper under Section 232 of the Trade Expansion Act of 1962. The proclamation lowers tariffs from 25% to 15% on designated steel and aluminum derivative products, including certain types of agricultural equipment; residential heating, air conditioning and ventilation equipment; and mobile industrial equipment from certain countries. It also adds two new categories of steel and aluminum derivative import products that will be subject to a 25% tariff and revises the definition of products “entirely” made with U.S. metals and exempt from tariffs from 95% to 85% content. The adjustments will take effect for goods imported on or after June 8 and will remain in place until Dec. 31, 2027. View a White House fact sheet with more information.
Controversy continues around long-term funding for Department of Homeland Security
Senate Republicans continue working on reconciliation legislation that would provide the Department of Homeland Security with funding for the Trump administration’s immigration enforcement activities during the next three years. Progress on the legislation has been bogged down recently because of controversies surrounding President Trump’s nearly $1.8 billion anti-weaponization fund and a request for security-related funding for the White House ballroom project. Senate Republican leader John Thune (R-S.D.) has indicated the chamber will move forward with votes regarding amendments to the legislation with the goal of obtaining Senate approval later this week. Republicans are using the budget reconciliation process, which allows for passage of the bill with only a simple majority vote in the Senate, to advance the immigration enforcement funding after failing to reach agreement with Senate Democrats on a bipartisan path forward.
Meanwhile, Homeland Security Secretary Markwayne Mullin testified before Congress for the first time since taking over the agency from former Secretary Kristi Noem in March. Under questioning from lawmakers in the Senate Appropriations Committee, Mullin said DHS officials “will never break the Constitution, and we’re not going to break the law” but would not commit to abiding by rulings from federal courts because he views the courts as politicized. Additionally, in testimony before the House Homeland Security Committee, he noted Immigration and Customs Enforcement will resume its regular training programs in July after abandoning an accelerated training program used to quickly deploy new agents to ramp up deportations. He further indicated DHS will certify and dispatch veteran officers to provide additional instruction to those hired under the fast-track program.
Coalition sends letter to IRS as Section 179D construction deadline approaches
On May 26, the Coalition for Energy Efficient Jobs & Investment, which includes NRCA, sent a letter to the IRS in response to the Treasury Department’s annual Priority Guidance Plan that identifies which tax issues the agency will prioritize for providing guidance. Specifically, the letter asks the Treasury Department and the IRS to include “Guidance under §179D on the energy efficient commercial buildings deduction” in the 2026-2027 Priority Guidance Plan. The letter stresses the immediate need for guidance given the upcoming beginning of construction deadline of June 30, which took effect with the enactment of the One Big Beautiful Bill Act (H.R. 1) in July 2025. In addition, the letter requests the guidance address the application of the prevailing wage and apprenticeship requirements to the 179D tax deduction and the ability to pursue projects using the alternative deduction for energy-efficient building retrofit property.
NRCA will continue working with its coalition partners to maximize the availability of the Section 179D deduction as a catalyst for high-performance upgrades to commercial and multifamily buildings that drive economic and job growth across roofing and other industries.
Legislation to increase overtime pay introduced
Rep. Mark Takano (D-Calif.) and 22 other House Democrats have introduced the Restoring Overtime Pay Act (H.R. 8868), legislation to modify rules for determining which employees are eligible for overtime compensation under the Fair Labor Standards Act. The bill would increase the salary threshold from the current level of $35,568 to more than $89,000 by 2030. Sen. Bernie Sanders (I-Vt.), the senior minority member of the Senate Health, Education, Labor and Pensions Committee that has jurisdiction over the issue, also has introduced similar legislation in the Senate. Although H.R. 8868 is not expected to move in Congress this year, such legislation could gain traction if Democrats achieve majority control in one or both chambers of Congress after the midterm elections in November.
The introduction of this legislation comes soon after the Department of Labor formally rescinded a regulation from the Biden administration that would have raised the salary threshold to $58,656 by Jan. 1, 2025, and included an automatic escalator clause to update the threshold every three years based on inflation. The Biden rule had previously been struck down by a federal court, which ruled the administration had exceeded its authority in issuing the regulation.
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