Key facts
- President Donald Trump is preparing to impose new tariffs on dozens of countries.
- A temporary 10% global tariff is set to expire.
- Generic drugs entering the U.S. will have a 0% tariff for two years starting August 1.
- Tariffs on generic drugs will increase to 100% for one year and 200% thereafter.
- Canada will face 35% tariffs on goods not covered by USMCA.
- An additional 40% tariff will be applied to goods transshipped to evade tariffs.
- The administration is preparing trade actions under Section 301 of the Trade Act related to forced labor.
President Donald Trump is preparing to implement new tariffs on dozens of countries as an existing 10% global tariff is set to expire. He announced that generic drugs imported to the U.S. will maintain a 0% tariff for two years starting August 1, after which the rate will rise to 100% for one year and 200% thereafter. The administration is also working on investigations under Section 301 of the Trade Act related to forced labor. Goods from Canada not covered by the USMCA agreement will face 35% tariffs, with the administration citing concerns over illicit drug trafficking. An additional 40% tariff will be imposed for transshipment, where countries send goods through other nations to evade existing tariffs. Despite Trump's framing of tariffs as being paid by other countries, importers in the U.S. pay them directly, which historically has led to higher prices for U.S. businesses and consumers.