The United States is set to impose new tariffs that could impact dozens of countries soon, as indicated by trade envoy Jamieson Greer. President Donald Trump's temporary global 10% duty, imposed earlier this year following legal setbacks, is due to expire this week. The Trump administration is preparing fresh tariffs targeting 60 trading partners over their alleged failures to act against forced labor.
Greer told CNBC that new duties are expected soon but did not specify a timeline. Analysts anticipate that new tariffs, ranging between 10% and 12.5%, will replace the expiring temporary duties. These new tariffs are part of Trump's renewed push to use tariffs as leverage against US trading partners, sparking fears of retaliation and diplomatic tensions.
Washington recently announced a 25% duty on certain Brazilian goods and a 50% levy on many Canadian products, effective in 30 days. Canadian Prime Minister Mark Carney is exploring 'all options' and agreed to intensify discussions with Trump. Additionally, Trump announced a new 100% sector-specific tariff on imported generic drugs, set to take effect from August 2028, rising to 200% in 2029.
The new tariffs over forced labor concerns will cover the majority of US trade. A 10% tariff rate will affect US imports from partners including Canada, the European Union, Mexico, Taiwan, and the United Kingdom, while goods from over 40 other major economies like China, India, and Japan will face a 12.5% levy. The EU has previously deemed tariffs on these grounds 'unjustified.'
Negotiations between the US and Mexico over a North American free trade pact are intensifying, while talks with Canada have proceeded more slowly. Trade lawyer Dave Townsend noted that higher tariffs appear aimed at encouraging an agreement between Canada and the US, or in retaliation for failing to reach such an agreement. The question remains whether this will start a 'cycle of escalation and retaliation.'
