US to impose 10%-12.5% tariffs on 60 partners over forced labor; Canada faces 50%

Published - July 22, 2026 07:08 am IST — Washington, United States

AFP

The United States is poised to impose new tariffs that could affect dozens of countries, trade envoy Jamieson Greer signaled on Tuesday (July 21, 2026), as President Donald Trump's temporary global levies are due to expire this week.

The Trump administration has prepared fresh tariffs targeting 60 trading partners over their alleged failures to address forced labor, as officials seek to rebuild the U.S. leader's trade agenda following legal setbacks.

"We expect to see some action soon," Mr. Greer told CNBC when asked whether new duties were forthcoming. He did not specify a timeline.

Mr. Trump imposed a 10% global duty earlier this year after several of his tariffs were struck down by the Supreme Court in February. This levy expires on Friday (July 24, 2026).

Analysts expect that new tariffs over forced labor concerns — set between 10% and 12.5% — would replace these temporary duties.

The measures come as Mr. Trump makes a renewed push to use tariffs as leverage against U.S. trading partners, raising fears of retaliation and diplomatic tensions.

Recent Tariff Actions

• Washington announced a fresh 25% duty on certain Brazilian goods last week.
• On Monday, the U.S. unveiled a 50% levy on many Canadian products, set to take effect in 30 days.
• On Tuesday (July 21, 2026), Mr. Trump announced a new 100% sector-specific tariff on imported generic drugs, effective from August 2028, rising to 200% in 2029.
• For now, the tariff on generic drugs will be cut to zero from August 2026, creating a window for onshoring pharmaceutical production to the United States.

Canadian Prime Minister Mark Carney said on Tuesday (July 21, 2026) that he was examining "all options," adding that he and Mr. Trump had agreed to "intensify discussions" in the coming weeks on a possible deal.

Forced Labor Concerns

Mr. Greer said on Tuesday (July 21, 2026) that new action on forced labor will cover the majority of U.S. trade, with the moves likely to reignite trade tensions.

• A 10% tariff rate would apply to U.S. imports from partners including Canada, the European Union, Mexico, Taiwan, and the United Kingdom, which were found to have taken steps against forced labor.
• Goods from over 40 other major economies, including China, India, and Japan, would face a 12.5% levy.

The EU previously stated that it considers tariffs imposed on these grounds "unjustified."

Canada Pressure

Washington's planned 50% tariff on Canada comes as U.S.-Mexico talks over a North American free trade pact intensify. The U.S. recently declined to extend the accord in its current form.

Mr. Greer is scheduled to travel to Mexico from Wednesday (July 22, 2026) to Friday (July 24, 2026) for discussions linked to a joint review of the U.S.-Mexico-Canada Agreement (USMCA).

Negotiations with Canada, however, have proceeded at a slower pace. Carney on Tuesday (July 21, 2026) did not indicate that he would travel to Washington for talks.

Some legal experts view Mr. Trump's use of an untested legal provision — Section 338 of the Tariff Act of 1930 — as a means to gain leverage over Canada in USMCA negotiations.

Trade lawyer Dave Townsend of Dorsey & Whitney added that higher tariffs "appear to be aimed at encouraging an agreement between Canada and the United States, or in retaliation for the lack of one."