US Tariff Policy

WASHINGTON — The United States is replacing its expiring global 10% import levy with new tariffs of 10% to 12.5% on goods from roughly 60 trading partners, taking effect Friday after the Trump administration cited inadequate action against forced labor.

The duties, authorized under Section 301 of the Trade Act of 1974, supersede the worldwide emergency tariffs in place since February 24 that faced a 150-day statutory limit. Steel, aluminum, oil, gas, and goods already loaded onto ships are exempt. Trade Representative Jamieson Greer said his office reviewed more than 1,600 written submissions and heard testimony from over 100 witnesses before finalizing the measures. Certain European Union products are also affected, though most EU exports remain governed by a separate arrangement capping duties at 15%.

The Center for American Progress called the tariff policy unprecedented and harmful to the US economy, while the Tax Policy Center estimates the levies will cost American households an average of $960 annually.

The United States is replacing its expiring 10% global tariff with new country-specific duties of up to 12.5%, a shift that will affect nearly all American imports beginning Friday. The new rates, announced by Trade Representative Jamieson Greer, take effect at midnight US time as the blanket 10% levy — a 150-day stopgap imposed in February after the Supreme Court struck down part of President Donald Trump's earlier tariff framework — reaches its deadline.

The tariffs, grounded in Section 301 of the Trade Act of 1974, target roughly 60 countries and territories over what Washington calls inadequate enforcement against forced labour. Japan and Norway face the maximum 12.5% rate, while Canada and the European Union are set at 10%, keeping the EU below a 15% ceiling agreed in bilateral trade talks.

The move drew sharp criticism from allies. Norwegian Foreign Minister Espen Barth Eide disputed the forced-labour justification, saying Norway is adopting the same regulations as the EU and calling the tariff disparity unreasonable.

U.S. and Mexican negotiators convened in Mexico City on July 21 for a third round of bilateral trade talks, launching the first annual review of the USMCA with Canada excluded from the proceedings. The U.S. delegation, led by Trade Representative Jamieson Greer, will discuss automobiles, steel, agriculture, and economic security through Thursday.

Washington declined to renew the pact for another 16 years, triggering a mechanism under which the agreement will expire in 2036 if consensus is not reached. Mexico's new ambassador to the U.S., Roberto Lazzeri, said Mexico expects a deal by the end of 2026. Greer praised Mexico's pragmatic approach and its decision not to retaliate against U.S. tariffs of 25% on Mexican automobiles and 50% on steel and aluminum.

A meeting between Mexican President Claudia Sheinbaum and Greer is set for July 22. The U.S. trade deficit with Mexico surpassed $81 billion in early 2026, while Washington imposed separate 50% tariffs on most Canadian goods.

Brazil will not retaliate against new U.S. tariffs but will instead invoke a reciprocity law to correct what it calls trade injustices, Vice President Geraldo Alckmin said on Monday after Washington imposed 25% duties on Brazilian goods.

An "eye for an eye" approach would leave both countries blind, Alckmin said, adding that Brasilia will pursue public hearings under the reciprocity framework and continue dialogue with Washington and U.S. companies operating in Brazil. The U.S. duties affect roughly 18% of Brazilian exports to the United States, or about $7.4 billion, with a further 12.5 percentage-point increase possible by July 24 over forced-labor allegations.

The government's response rests on three pillars: financial support for affected companies, market diversification and engagement with domestic industries. Trade agency ApexBrasil will launch a 130-million-real diversification plan in August targeting India, Mexico, Singapore, Japan and Southeast Asian nations. The 25% surcharge also applies to goods already in transit from July 29.

The United States will maintain zero tariffs on all imported generic medicines for a two-year grace period starting Aug. 1, 2026, before imposing a 100% duty from August 2028 and doubling it to 200% the following year, President Donald Trump announced on his Truth Social platform.

The policy is designed to force generic drug manufacturing back to the United States by penalizing companies that fail to build domestic production facilities within the two-year window. Trump said the buffer period gives manufacturers time to relocate supply chains before the punitive tariffs take effect.

The tariff escalation represents one of the most aggressive trade measures targeting the pharmaceutical sector, with the 200% rate effectively pricing most foreign-made generics out of the U.S. market after 2029.

U.S. President Donald Trump is preparing to impose new tariffs on imports from up to 60 countries this week, as a temporary global 10% duty on all imports is set to expire Friday. The proposed levies, ranging between 10% and 12.5%, are tied to a U.S. investigation into forced labor practices. Among the countries covered by the probe are the European Union, China, Japan, India, Mexico and several Southeast Asian nations.

The broader action follows Trump's decision Monday to sign proclamations imposing a 50% tariff on a range of Canadian goods, from wine to cement, taking effect in about a month. Canadian Prime Minister Mark Carney said his government has submitted detailed proposals to resolve the dispute, while Ontario Premier Doug Ford urged retaliation. Trump has also hit Brazilian imports with a 25% tariff.

Advisers have warned Trump that the tariff escalation risks an economic shock ahead of the midterm elections. The U.S. Supreme Court earlier this year struck down a portion of Trump's reciprocal tariffs introduced in April 2025.