US Tariff Policy

The United States announced an additional 12.5% tariff on Brazilian goods effective Thursday, stacking atop a 25% levy imposed last week and bringing the total duties on some products to 37.5%. The Office of the United States Trade Representative alleged that Brazil has failed to effectively ban imports of goods produced with forced labor, applying the surcharge alongside measures targeting China, Argentina, Australia, India, the United Kingdom, Russia and South Africa.

Brazil rejected the tariffs as arbitrary and unjustified, saying it plans to invoke its Reciprocity Law and file a complaint at the World Trade Organization. Brasília noted it ratified the International Labour Organization's Convention No. 29 on forced labor via decree in February 2026, though experts note Brazil lacks a specific customs instrument comparable to the US mechanism for blocking such imports at the border.

The Trump administration has escalated trade pressure on multiple fronts this month.

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.

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.