Just days before President Donald Trump’s temporary 10% global import tariff is set to expire, a top U.S. trade official has confirmed that new targeted duties against dozens of nations are imminent, launching a renewed push to advance the administration’s trade agenda after a series of high-profile legal setbacks.
U.S. Trade Representative Jamieson Greer told CNBC on Tuesday that “we expect to see some action soon” on fresh tariffs crafted to penalize 60 U.S. trading partners over their alleged insufficient action to curb forced labor in global supply chains. The outgoing temporary tariff was implemented earlier this year after the Supreme Court struck down a broader set of Trump administration tariffs in February, and it is scheduled to expire at the end of this week. Industry and policy analysts broadly expect the new forced labor-linked tariffs, which will carry rates between 10% and 12.5%, to replace the expiring temporary measure.
This latest tariff push comes as the Trump administration doubles down on using import duties as a negotiating tool to extract concessions from U.S. trading partners, a strategy that has already stoked widespread fears of retaliatory measures and escalating diplomatic friction across major global economies. In just the past week, the administration has rolled out two new unilateral tariff measures: a 25% duty on select Brazilian goods set to take effect Wednesday, and a 50% levy on most Canadian imports scheduled to enter into force in 30 days.
In response to the Canadian tariff announcement, Canadian Prime Minister Mark Carney confirmed Tuesday that Ottawa is examining “all options” to respond, but noted that he and Trump had agreed to ramp up bilateral discussions over the coming weeks to work toward a potential negotiated settlement. Alongside the country-specific measures, Trump also announced Tuesday a phased 100% to 200% sector-specific tariff on imported generic pharmaceuticals, set to take full effect by 2029. To incentivize domestic production relocation, the administration will keep the tariff at zero for all imports through August 2026, giving companies a three-year window to onshore generic drug manufacturing to the U.S.
Greer emphasized that the new forced labor-linked tariffs will cover the vast majority of all U.S. goods imports, a scope that almost guarantees renewed friction in global trade relations. Countries found to have taken at least some action to address forced labor – including Canada, the European Union, Mexico, Taiwan, and the United Kingdom – will face a 10% tariff, while more than 40 other major economies including China, India, and Japan will face a higher 12.5% levy. The European Union has already publicly rejected the tariffs as unjustified on legal and policy grounds.
The 50% Canadian tariff comes as negotiations over the future of the U.S.-Mexico-Canada Agreement (USMCA) enter a critical phase. Washington recently rejected calls to extend the existing trade deal in its current form, and Greer is scheduled to travel to Mexico this week for official talks tied to the required joint review of the trilateral pact. Negotiations with Canada have progressed far slower than with Mexico, leading many trade legal experts to conclude that the new tariffs are a deliberate leverage play to force Canadian concessions.
Many legal analysts point out that Trump is relying on Section 338 of the 1930 Tariff Act, a largely untested legal provision, to justify the new measures. “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,” explained Dave Townsend, a trade attorney at Dorsey & Whitney. The core open question, Townsend noted, is whether both sides will spiral into a “cycle of escalation and retaliation.” A critical detail that amplifies this risk is that no Canadian goods entering under USMCA rules are exempt from the new 50% levy. Trump pushed back Tuesday against suggestions the tariffs are tied to earlier tensions over Canadian wildfire smoke drifting into the U.S., saying the two issues are unrelated.
For Brazil, the incoming 25% tariff over alleged unfair trade practices has already drawn fierce pushback from South America’s largest economy. The measure is set to take effect just months before Brazil’s presidential election, making it a major flashpoint in the country’s national campaign. While a handful of sensitive products – including beef, coffee, certain aircraft parts, and goods that cannot be sourced domestically in the U.S. – are exempt from the duty, the measure still covers more than $11 billion in annual Brazilian exports to the U.S. The American Chamber of Commerce for Brazil has warned that the new rules place Brazil among the nations facing the most restrictive access to the U.S. market.