50% Canada tariff and 10-12.5% duties on 60 nations to disrupt supply chains

For supply chain professionals, the simultaneous expiration of the 10% global levy and introduction of new tariffs create a planning nightmare. The 50% tariff on Canadian products—taking effect in 30 days—directly impacts automotive, energy, and agricultural supply chains, while the forced-labor tariffs requiring due diligence on sourcing from 60 countries will necessitate rapid audits and alternative sourcing.

The Trump administration is preparing a sweeping new round of tariffs targeting 60 trading partners over forced-labor concerns, just days before its temporary 10% global levy expires on July 24, 2026. Trade envoy Jamieson Greer signaled the imminent actions on July 21, telling CNBC, "We expect to see some action soon," though he did not specify an exact timeline. Analysts expect the new duties, set between 10% and 12.5%, to replace the expiring levy and cover the majority of US imports, reigniting trade tensions after a series of legal setbacks for the president's trade agenda.

“

Adding to the immediate friction, Washington announced a 25% duty on certain Brazilian goods last week and a 50% tariff on many Canadian products on July 20, effective in 30 days.

In February 2026, the Supreme Court struck down a swath of Trump's earlier tariffs, ruling they exceeded presidential authority. That decision forced the administration to rely on the temporary 10% global duty, now ending. The pivot to forced-labor allegations invokes a different legal framework—potentially under Section 307 of the Tariff Act or other statutes that prohibit imports of goods made with forced labor. This human-rights-based justification may be more resistant to judicial review, though legal challenges are still likely. The administration has prepared specific country-by-country determinations, signaling a methodical approach to build a durable tariff regime.

The new tariffs, though lower than some earlier ones, would affect a huge volume of trade, including partners like Canada, the European Union, and others. Adding to the immediate friction, Washington announced a 25% duty on certain Brazilian goods last week and a 50% tariff on many Canadian products on July 20, effective in 30 days. Canadian Prime Minister Mark Carney said he is looking at "all options" and that he and Trump had agreed to "intensify discussions" on a possible deal. These moves suggest the administration is simultaneously leveraging tariffs for broad labor standards enforcement and bilateral trade disputes.

In a particularly aggressive sectoral action, Trump announced a new 100% tariff on imported generic drugs to take effect from August 2028, escalating to 200% in 2029. This is paired with a zero rate from August 2026, creating a two-year window intended to incentivize onshoring of pharmaceutical production. The phased approach gives companies time to build US facilities but presents a daunting cliff: generic drugs that are overwhelmingly manufactured overseas would become prohibitively expensive if domestic production does not materialize fast enough.