Donald Trump is preparing to impose new tariffs “soon” on dozens of countries to replace the temporary global 10% tariff that expires Friday, US Trade
Representative Jamieson Greer said on Tuesday, as the US President escalated his trade war with Canada this week. According to officials briefed on the plans quoted by The Financial Times, the new tariffs would initially range between 10% and 12.5% and apply to about 60 countries following a US investigation into forced labour practices. The administration is expected to use findings from the probe, conducted under Section 301 of the Trade Act of 1974, as the legal basis for the measures after the US Supreme Court earlier this year struck down the reciprocal tariffs introduced following Trump's "Liberation Day" announcement in April 2025. In response to that ruling, the administration introduced a temporary 10% tariff regime in February. Those duties are set to expire on Friday. Officials are also pursuing other trade investigations that could provide legal authority for higher tariffs in the future.
US Trade Representative Jamieson Greer says the administration's investigation into "forced labor" covers 60 countries and 99% of our trade and could result in even more tariffs pic.twitter.com/df8JPZKz3t
— Aaron Rupar (@atrupar) July 21, 2026
According to the FT report, senior administration officials have urged the President to maintain stability with trading partners and honour trade agreements reached in 2025 rather than risk renewed economic disruption ahead of next year's midterm elections.
The proposed tariffs come as tensions between the United States and Iran continue to affect global energy markets.
The conflict has contributed to higher fuel prices in the United States, with petrol rising above $4 a gallon this week, adding to concerns over the cost of living.
Polling conducted by Focaldata on behalf of the Financial Times earlier this month found that more than two-thirds of voters disapproved of Trump's handling of living costs. "I think the big influence on tariff rates is the political climate and affordability concerns, which constrain Trump's ability to escalate," said Michael Smart, managing director at Rock Creek Global Advisors.
The administration has already softened some of its earlier tariff proposals by exempting a range of consumer goods, including beef and coffee, and reducing some duties on products made with steel and aluminium.
Following separate trade investigations into critical minerals and aircraft parts, officials recommended continuing negotiations with trading partners instead of imposing additional tariffs. "This does not mean that tariff hikes are in the rear-view mirror," said Wendy Cutler, a former US trade official who is now senior vice-president at the Asia Society Policy Institute. "But it does suggest that a more cautious approach is now called for, particularly in the lead up to the midterm elections."
According to officials, one of the ongoing Section 301 investigations also covers excess manufacturing capacity involving several economies, including the European Union, China, India, Japan, Mexico, South Korea, Taiwan, Vietnam, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand and Bangladesh.
This comes at a time when India's Commerce Secretary Rajesh Agrawal said last week that the trade deal between Washington and New Delhi was ready and the two sides are waiting for an “appropriate time” to sign.
“They (the US) are in discussions with other countries, but they have not come out with a deal yet…There has been a set of developments since the removal of IEEPA tariffs (International Emergency Economic Powers Act)…Very good discussions have been ongoing. The framework deal is ready. Whenever it is the right time, the appropriate time, the deal will be signed,” Agrawal said. “Both sides understand what goes within the framework deal and what goes into the larger bilateral trade agreement.”
