US readies broad forced-labor tariffs as global 10% levy expires Friday
Washington is preparing to replace a blanket 10% global tariff expiring Friday with targeted 10% to 12.5% levies on 60 countries, threatening prolonged supply chain costs for businesses across nearly all US trade.
U.S. Trade Representative Jamieson Greer confirmed Tuesday that the White House will impose new tariffs "soon" on dozens of nations. The levies are expected to take the place of a temporary 10% global tariff that reaches the end of its 150-day legal window on Friday. Greer told CNBC he could not specify an exact timeline for the announcement.
The incoming duties will target countries that have failed to crack down on forced labor, reviving a proposal initially floated in June. The measure would apply to 60 nations, encompassing roughly 99% of American trade. Importers from major economies including Mexico, Taiwan, the UK, China, Australia, Japan and Brazil face rates between 10% and 12.5%.
For corporate supply chains, the transition from a flat global tariff to a targeted forced-labor framework creates immediate compliance and cost uncertainties. Companies must now trace sourcing and adjust pricing strategies ahead of the Friday deadline. The sheer scale of the coverage leaves few major trading partners exempt from increased duties, essentially maintaining a broad tariff baseline.
The February global tariffs were enacted under a specific statute after the Supreme Court struck down most of the administration's broader Liberation Day tariffs. This law allows temporary levies to remain in effect for 150 days while the U.S. assesses major trade imbalances. With that period concluding this week, the administration needed a new legal vehicle to maintain trade pressure.
Escalation with Ottawa
The pending broad tariffs coincide with a sharp deterioration in US-Canada trade relations. On Monday, the administration ordered 50% tariffs on a range of Canadian goods, set to take effect in 30 days. Greer defended the move under Section 338 of the Tariff Act of 1930, which permits retaliatory levies against countries discriminating against US exports.
“We have always had trade issues with Canada, it’s always been the most contentious part of our relationship,” Greer said. He cited ongoing Canadian restrictions on US-made cars, alcohol and dairy as the primary justification for the dramatic rate increase.
Canadian Prime Minister Mark Carney accused Washington of violating the North American trade pact. However, he stated Canada is willing to “engage intensively to address any outstanding issues.” Carney contended that his country's restrictions were merely a response to prior US auto tariffs.
Greer dismissed Canada's current diplomatic offerings, noting they are “generally for promises to discuss these issues” and often cover “things we already do.” This diplomatic standoff suggests the 50% duties will likely take effect as scheduled. North American automakers and agricultural exporters will soon have to absorb significant new costs.
