U.S. tariffs expected soon as Washington prepares broad duties tied to forced-labour probes
USTR signals new U.S. tariffs targeting about 60 economies, with proposed rates of 12.5% and reduced 10% for some partners; Canada is listed among those affected.
The United States Trade Representative told a television interview that new U.S. tariffs aimed at addressing forced‑labour concerns and other trade practices are expected imminently, with outcomes anticipated within days. The announcement follows a series of investigations launched by USTR staff and comes after a U.S. Supreme Court decision last winter that voided large parts of an earlier tariff plan. Washington says the measures would replace temporary duties and could affect roughly 60 economies, including close trading partners such as Canada and members of the European Union.
USTR previewed scope of new duties
Jamieson Greer, the White House trade representative, told CNBC the agency expects to announce additional duties “shortly,” though he declined to provide a precise timetable. He said USTR’s recent probes into import practices — notably investigations into goods linked to forced labour — underpin any durable tariff action.
Greer framed the expected package as a successor to short‑term levies the administration already put in place after a judicial setback, saying the agency aims to establish a more legally sustainable framework for long‑term tariffs. He cautioned, however, that the process requires careful legal footing and that final determinations would follow the conclusion of the inquiries.
Court decision reshaped Washington’s approach
Late‑winter rulings by the U.S. Supreme Court invalidated significant portions of the previous tariff authority the administration relied on, finding the president had exceeded statutory powers in key respects. That judgment prompted USTR to revert temporarily to modest 10% tariffs while it pursues a different legal route.
Sector‑specific tariffs such as those on autos, steel, aluminium and copper were not affected by the court’s decision, according to USTR statements, and will continue to be managed under existing statutory authorities. The administration is now using alternative trade laws that USTR officials say will better withstand judicial scrutiny for broader, non‑sector measures.
Proposed rates and the list of targeted economies
Earlier proposals circulated by USTR recommended a two‑tier structure for potential duties depending on countries’ laws and enforcement on forced‑labour imports. One outline suggested a 12.5% tariff for about 45 economies judged not to have an effective ban or adequate enforcement against goods produced with forced labour.
A lower 10% rate was proposed for nations that have such prohibitions on the books but whose application USTR views as insufficient. Canada, the European Union, Indonesia, Mexico, Pakistan and Ecuador were named among jurisdictions where enforcement was deemed partial or inadequate, and the United Kingdom was flagged for having an incomplete prohibition in USTR’s assessment.
Recent unilateral surcharges on Brazil and Canada
USTR has already moved on several fronts this week, imposing targeted duties on specific trading partners. Washington announced a 25% surcharge on a range of Brazilian products, citing policies that it said had materially reduced U.S. access to a key export market. USTR described those measures as unreasonable restraints affecting American commerce.
Separately, the United States announced an additional 50% surcharge on certain Canadian goods, with the levy scheduled to take effect in roughly a month’s time. USTR framed that action as a response to what it called discriminatory treatment by Ottawa and as retaliation for Canadian countermeasures taken after the initial U.S. tariffs were imposed in 2025.
Implications for Canadian exporters and supply chains
The measures, if finalized as sketched by USTR, could raise costs and create new compliance burdens for Canadian exporters across multiple sectors. Firms that rely on integrated North American supply chains may face higher import prices or diversion of trade flows as buyers and sellers adjust to the new duties.
Trade groups and provincial governments are likely to press Ottawa for rapid consultation with Washington and to seek exemptions or relief where duties would cause acute economic harm. Analysts warn that uncertainty alone can disrupt investment and logistics decisions, and that businesses will be watching carefully for the specific product lists and legal rationales that accompany any formal USTR determinations.
Next steps and timetable for governments and businesses
USTR said its ongoing investigations will inform the final scope and duration of any additional tariffs, and agency officials signalled announcements could come within days. In parallel, affected governments may seek consultations under trade agreements or pursue administrative challenges in Washington to narrow the scope of measures.
Industry stakeholders can expect a short window to submit comments or evidence to USTR once proposed lists are published, which could shape the final design of tariffs and carveouts. At the same time, diplomatic channels between the United States and impacted partners — notably Canada and the EU — are expected to intensify as officials seek both legal remedies and negotiated adjustments.
The coming days will determine whether the provisional policies evolve into a lasting reshaping of U.S. trade enforcement, and Canadian exporters, government officials and industry groups are preparing for both legal contestation and potential economic adjustments.
