What Happened

The Trump administration announced on Thursday that it is imposing new tariffs of 10% to 12.5% on imports from 60 countries, including Canada. These duties are set to take effect at 12:01 a.m. on Friday, replacing a temporary 10% worldwide tariff that expires on the same day. The U.S. Trade Representative, Jamieson Greer, stated that the action addresses inadequate enforcement of bans on goods produced by forced labour. The administration alleges that these 60 countries account for 99% of U.S. imports and have weak forced labour protections. Some products, including oil, gas, fertilizer, and items under USMCA exemptions, are excluded from the new duties. The tariffs are imposed under Section 122 of the Trade Act of 1974, following the Supreme Court's earlier rejection of tariffs under the International Emergency Economic Powers Act (IEEPA).

Why It Matters

This policy shift marks a significant change in U.S. trade enforcement, moving from emergency powers to specific trade act authorities after the Supreme Court struck down earlier tariff measures. The administration frames the tariffs as a human rights and trade practice correction, aiming to pressure trading partners to enforce their own forced labour import bans. While the U.S. has had such a ban for nearly a century, the new action targets the enforcement standards of its partners. The timing and scope of the tariffs, affecting nearly all U.S. imports, signal a continued aggressive stance on trade despite legal challenges to previous methods. Human rights watchers have expressed skepticism about the primary motivation, though they acknowledge the tariffs draw attention to labor trafficking issues.