The Trump administration imposed new tariffs on goods from more than 80 countries early Friday, replacing a global 10% duty that expired at midnight, according to The New York Times. Section 301 of the Trade Act of 1974 — a provision authorizing action against countries whose trade practices are deemed unreasonable or discriminatory — provided the legal basis for the new rates, which fall between 10% and 12.5%.
As justification, the White House pointed to other nations' unwillingness to prohibit or meaningfully crack down on forced-labor goods, arguing that American companies operating under such rules are put at a competitive disadvantage. Canada and the E.U. are both subject to a 10% rate under the arrangement, according to The Times. Despite holding a 10% rate alongside Canada, the E.U.'s prohibition on forced-labor imports is not due to kick in until December 2027; Canada's equivalent ban is already on the books.
Separately, earlier this week, President Donald Trump announced 50% tariffs on a slate of Canadian goods — among them cement, dairy products, hockey sticks, plywood, paper, and wine — charging that Ottawa had treated American industry unfairly, with the duties set to begin in August, according to The Times. The legal vehicle for the Canadian duties is Section 338 of the Tariff Act of 1930, a seldom-used provision that targets countries placing excessive burdens on American imports; notably, the tariffs will reach goods that would otherwise be shielded by the U.S.-Canada-Mexico Agreement. Canadian Prime Minister Mark Carney maintained that the policies triggering Washington's complaints were retaliatory steps Ottawa took after Trump first hit Canada with tariffs in April 2025, according to The Times.