The Trump administration has announced a new global tariff system that will replace a temporary 10-per-cent levy expiring July 24. The measures will affect imports from Canada, the European Union and nearly 60 other countries, although Canadian goods meeting Canada-U.S.-Mexico Agreement rules of origin will remain exempt from the tariffs.
Washington says the policy responds to trading partners’ failure to prevent products made with forced labour from entering their supply chains. A U.S. Trade Representative investigation examined 59 countries and the European Union and concluded that none met American standards. Trade Representative Jamieson Greer said the United States opposes sweatshops.
The administration’s legal basis for broad tariffs has shifted following a Supreme Court decision that invalidated an earlier regime imposed under emergency economic powers. After that ruling, Trump introduced a temporary tariff under Section 122 of the U.S. Trade Act, which permits limited action addressing balance-of-payments deficits without congressional approval.
The latest policy relies on Section 301, which authorizes tariffs in response to unfair foreign trade practices. Goods from Canada and 15 other partners, including the European Union, United Kingdom, Argentina, El Salvador, Bangladesh and Pakistan, will face 10-per-cent tariffs. Imports from 44 others will generally face 12.5-per-cent levies instead.
Japan, Singapore, India, South Korea and Vietnam are among the countries in the higher tariff category. The broad-based duties are separate from sector-specific tariffs on steel, aluminum and automobiles, which are imposed under national security provisions. They also differ from additional tariffs threatened against certain Canadian goods by the administration.
Those proposed 50-per-cent duties are scheduled to begin August 19 and would target billions of dollars in Canadian exports. The administration says they address alleged discrimination against U.S. commerce in Canada’s alcohol, dairy and automotive sectors. Together, the measures reflect continuing efforts to build tariff policy within existing statutory limits.