The United States is preparing a new wave of tariffs that could affect dozens of major trading partners as President Donald Trump’s temporary 10 percent global import surcharge approaches its expiration on Friday.
U.S. Trade Representative Jamieson Greer signaled that the administration was close to announcing trade measures covering 60 economies over their alleged failure to prevent goods produced using forced labor from entering their markets.
“We expect to see some action soon,” Greer told CNBC when asked whether new duties were imminent.
He did not provide a specific announcement or implementation date. However, the proposed measures are expected to replace at least part of the temporary global tariff structure introduced after the Supreme Court invalidated a broad section of Trump’s earlier trade program in February.
The administration is considering tariffs ranging from 10 percent to 12.5 percent, depending on its assessment of each trading partner’s forced-labor policies and enforcement.
Temporary levy expires
Trump imposed the current 10 percent global surcharge after the Supreme Court struck down tariffs that had been introduced under emergency economic powers.
The replacement surcharge took effect on February 24 under Section 122 of the Trade Act of 1974. That provision permits a temporary import surcharge to address serious U.S. balance-of-payments problems but limits the measure to 150 days.
The White House proclamation states that the surcharge will remain in effect until July 24, 2026. Its expiration means the administration needs a new legal basis if it wants to maintain broad duties on imported goods.
The forced-labor investigations under Section 301 of the Trade Act offer one potential replacement. Unlike the temporary global surcharge, Section 301 measures can remain in place for longer when the United States determines that foreign policies or practices are unreasonable, discriminatory or burdensome to American commerce.
Analysts expect the resulting duties to broadly replicate the expiring tariff while creating different rates for individual groups of trading partners.
Forced-labor tariffs
The Office of the U.S. Trade Representative began investigations into 60 economies in March. The inquiries examined whether governments had failed to impose and effectively enforce bans on imports made wholly or partly using forced labor.
Greer said the planned action would cover most U.S. trade, making it one of the most extensive initiatives pursued under Section 301.
A proposed 10 percent tariff would apply to imports from partners that Washington determined had taken some steps against forced labor but had not enforced their restrictions sufficiently. That group includes Canada, the European Union, Mexico, Taiwan and the United Kingdom.
Imports from more than 40 other economies, including China, India and Japan, could face the higher proposed rate of 12.5 percent.
The European Union has previously rejected the justification for the measure and described tariffs imposed on forced-labor grounds as unjustified.
The proposed rates are additional import duties and could interact with other sectoral or country-specific tariffs, depending on the final exemptions and implementation rules announced by Washington.
Tariffs drive leverage
The expected measures form part of Trump’s renewed effort to use tariffs as leverage against major U.S. trading partners following the legal setbacks to his earlier trade agenda.
Washington announced a new 25 percent tariff on certain Brazilian products during the previous week. On Monday, Trump also unveiled an additional 50 percent duty on selected Canadian goods, scheduled to take effect after 30 days.
Canadian Prime Minister Mark Carney said on Tuesday that his government was evaluating every available response to the planned tariffs.
Carney added that he and Trump had agreed to intensify negotiations during the coming weeks in an effort to reach a possible agreement before the new duties take effect.
The talks will determine whether Washington modifies, postpones or proceeds with the tariffs and whether Canada introduces retaliatory measures against U.S. goods.
The possibility of retaliation has raised concerns that the dispute could escalate into a wider trade confrontation affecting integrated North American supply chains.
Drug tariffs planned
Trump also announced a new sector-specific tariff regime for imported generic medicines on Tuesday.
Under the plan, the United States would reduce the tariff on generic drug imports to zero beginning in August 2026, creating a window for pharmaceutical companies to move manufacturing into the country.
The tariff would subsequently rise to 100 percent in August 2028 and double to 200 percent in 2029.
The phased approach is designed to provide manufacturers with time to build or expand U.S. production facilities before the higher duties take effect. It also reflects the administration’s wider objective of reducing American dependence on foreign pharmaceutical supply chains.
The generic drug measure would operate separately from the forced-labor tariffs and the country-specific duties targeting Canada and Brazil.
Its eventual impact would depend on the products covered, exemptions granted, company investment plans and the extent to which domestic manufacturing capacity expands before 2028.
Canada faces pressure
Washington’s planned 50 percent tariff on Canadian products comes as negotiations over the future of the United States-Mexico-Canada Agreement intensify.
The United States recently declined to extend the trade agreement in its current form. Greer was scheduled to travel to Mexico from Wednesday through Friday for discussions connected to the agreement’s joint review.
Negotiations with Canada have advanced more slowly, and Carney did not indicate on Tuesday that he planned to travel to Washington for talks.
Some trade lawyers believe Trump’s use of Section 338 of the Tariff Act of 1930 is intended partly to increase pressure on Canada during the negotiations.
The rarely used provision allows the president to impose additional tariffs of up to 50 percent when a foreign country is found to discriminate against U.S. commerce or impose unequal restrictions that disadvantage American products.
Trade lawyer Dave Townsend of Dorsey & Whitney said the measure appeared designed to encourage an agreement or respond to the absence of one.
The higher tariffs “appear to be aimed at encouraging an agreement between Canada and the United States, or in retaliation for the failure to reach such agreement, or both,” Townsend said.
Retaliation risk grows
Townsend said the central question was whether the two countries would enter a continuing cycle of escalation and retaliation.
The Canadian tariffs are scheduled to take effect on August 19 and will apply to affected goods even when they enter the United States under the USMCA.
That absence of an exemption increases the pressure on Canadian exporters that had previously benefited from preferential treatment under the regional trade agreement.
Trump said on Tuesday that the Canadian tariffs were unrelated to his earlier threats involving wildfire smoke that had moved from Canada into the United States.
The White House said the duties were intended to offset discriminatory Canadian measures affecting American commerce. Canada has maintained that its trade policies are consistent with its obligations and has indicated that it may respond if the tariffs take effect.
A broader trade dispute could increase costs for manufacturers whose production processes cross the US-Canada border several times before a finished product reaches consumers.
Brazil tariffs begin
The United States is separately preparing to implement a 25 percent tariff on a wide range of Brazilian goods over allegations of unfair trade practices.
The measure is scheduled to take effect on Wednesday and has drawn a strong response from Brazil. It also risks becoming an important issue in the country’s political debate ahead of its presidential election.
Washington has exempted several major product categories, including beef, coffee, certain aircraft components and goods that are not produced in the United States.
Even with those exclusions, the American Chamber of Commerce for Brazil warned that the measure would place the country among the economies facing the most restrictive conditions for access to the U.S. market.
The chamber estimated that the duties could affect more than $11 billion in Brazilian exports.
The tariffs may cover goods including furniture, machinery, footwear, ethanol and sugar. Brazil has rejected several of Washington’s accusations and is considering whether to introduce countermeasures.
Read more: U.S. imposes additional 50 percent tariffs on Canadian goods from August 19
Legal strategy changes
The new tariff program follows the Supreme Court’s 6–3 decision on February 20 that the International Emergency Economic Powers Act did not authorize the president to impose tariffs. The court held that the power to levy duties required clearer congressional authorization. Reuters reported that the ruling invalidated duties covering imports from numerous U.S. trading partners.
The administration responded by adopting the temporary 10 percent surcharge under Section 122 and accelerating investigations under more established trade statutes.
Section 301 allows the USTR to investigate foreign practices that may be unjustifiable, unreasonable or discriminatory and that burden or restrict U.S. commerce. Before imposing measures, the agency generally seeks consultations, receives public comments and holds hearings.
The USTR formally opened investigations into 60 economies on March 12. The list includes the UAE, Saudi Arabia, Qatar, Kuwait, Bahrain, Oman, the European Union, China, India, Japan, Canada, Mexico and the United Kingdom.
Together, those economies accounted for more than 99 percent of U.S. imports in 2024, according to the USTR fact sheet.
Hearings already held
USTR requested consultations with the affected governments and held public hearings on April 28 and 29. The hearings allowed companies, trade associations, labor organizations and foreign representatives to present their positions before the administration decided whether to impose duties. USTR published the hearing arrangements.
The agency later proposed tariffs of 10 percent on partners it considered to have taken partial action and 12.5 percent on economies judged to have weaker restrictions or enforcement. Product exemptions were proposed for selected categories, including certain pharmaceuticals, energy products, foods and critical materials.
Section 301 has historically been used for targeted disputes rather than an almost universal tariff covering most U.S. trade. Applying it simultaneously to 60 economies may therefore generate further legal and diplomatic challenges.
The administration argues that ineffective forced-labor import restrictions allow foreign producers to benefit from artificially lower costs, placing U.S. workers and companies at a disadvantage.
Trading partners counter that Washington is applying overly broad judgments to different legal systems and enforcement regimes.
North American talks
The tariff pressure coincides with negotiations over the future of the USMCA. The United States and Mexico completed two bilateral negotiating rounds before beginning a third round in Mexico City during the week of July 20.
The USTR said the discussions would cover steel, aluminum, automobiles, agriculture, labor, electronic payment services and economic security.
Earlier talks addressed automotive rules of origin, regulatory compatibility and the risk that companies from non-member economies could obtain the agreement’s benefits through production in North America. The first negotiating round also focused on reducing the U.S. trade deficit with Mexico and strengthening regional supply chains.
Because Washington declined to extend the agreement in its current form, the USMCA has entered a process that could eventually lead to its expiration unless the three governments agree on revisions.
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