US Prepares New Tariffs on Dozens of Trade Partners

Kathmandu. As the temporary 10 percent global import duty imposed by President Donald Trump is set to expire this week, the United States is preparing to announce new duties affecting dozens of trade partner countries. The US administration has moved forward with plans to impose new taxes on about 60 trade partners, accusing them of not taking effective steps against forced labor.

US Trade Representative Jamison Greer signaled that decisions regarding the new duties would be announced soon, but did not disclose a timeline. According to him, further steps will be taken in accordance with US trade policy on issues related to forced labor.

The temporary 10 percent global import duty, implemented since February, is set to expire on Friday after the Supreme Court overturned a part of the Trump administration's duty system this year. Analysts suggest that new duties ranging from 10 to 12.5 percent may be implemented in its place.

Under the new system, a 10 percent duty is expected to remain on US imports from Canada, the European Union (EU), Mexico, Taiwan, and the UK. Duties of up to 12.5 percent may be imposed on goods imported from more than 40 major economies, including China, India, and Japan. The European Union (EU) has already expressed dissatisfaction, calling such duties unfair.

The Trump administration has intensified trade pressure in recent days. Last week, a new 25 percent duty was announced on some Brazilian goods, and a decision was made to implement a 50 percent tax on many Canadian products after 30 days.

Canadian Prime Minister Mark Carney stated that all options are open and informed that negotiations with Trump to reach a potential trade agreement will be intensified in the coming weeks.

Meanwhile, President Trump has announced new sector-specific duties on imported generic drugs. According to him, these drugs will face a 100 percent duty starting August 2028, with plans to increase it to 200 percent by 2029. However, he also mentioned that to promote American production, these drugs will be exempted from duties for a period starting this August.

The US administration has stated that the new trade actions related to forced labor will cover a large portion of US imports and will further increase tensions in world trade.

While negotiations between the US and Mexico have intensified amid the review of the North American Free Trade Agreement (USMCA), discussions with Canada have not progressed as expected. Trade Representative Greer is scheduled to visit Mexico this week for discussions related to the agreement.

Trade law experts have stated that the US strategy of increasing pressure on Canada by using Section 338 of the Tariff Act of 1930 could create further tension between the two countries. They believe this increases the risk of initiating a cycle of retaliatory trade actions between both nations.

On the other hand, the decision to impose a 25 percent US duty on Brazilian goods has also created new controversy. However, a limited number of items such as beef, coffee, and some aircraft parts will be exempted from the duties to be implemented before Brazil's upcoming presidential election.

However, the American Chamber of Commerce in Brazil has warned that the new system will make Brazil one of the countries facing the most restrictions in terms of access to the US market, and exports worth more than 11 billion US dollars could be affected.