The Trump administration unveiled a 50% levy on imports from Canada to take effect in 30 days if an agreement is not reached. Officials also announced a 25% duty on Brazil last week, relying on distinct legal authorities for each action.

The duties on Canada rest on a provision of the Tariff Act of 1930. Under Section 338 of the Tariff Act of 1930, the Trump administration imposed 50% tariffs on Canadian goods excluding energy, potash, national-security-tariff-covered products, fish, and critical minerals, as outlined in the July 20, 2026 White House proclamation.

The duties on Brazil rely on Section 301 of the Trade Act of 1974. The U.S. Trade Representative's 2026 Section 301 action against Brazil included explicit exemptions for 17 categories of goods, including energy products, aircraft, and rare earth materials, as detailed in the Federal Register's annex to the 25% tariff order. The 2026 U.S. tariff actions against Brazil and Canada followed precedent from 2018, when Section 301 tariffs were applied to Chinese goods, though the 2026 Brazil tariffs specifically targeted 'unreasonable acts, policies, and practices' including market access restrictions for U.S. exporters.

New U.S. tariffs are set to hit Brazilian goods, including footwear. A worker inspects a shoe on a production line at footwear manufacturer Kissol in Franca, Brazil, on July 17, 2026.

U.S. Trade Representative Jamieson Greer stated that action under Section 301 of the Trade Act of 1974 would be coming soon. Greer answered questions during a Senate committee hearing on Capitol Hill on July 22, 2026.

These adjustments follow a period of legal uncertainty for the administration's trade agenda. The Supreme Court struck down country-specific tariffs in February 2026. The Supreme Court ruled 6-3 in Learning Resources, Inc. v. Trump that the International Emergency Economic Powers Act does not authorize the president to impose tariffs.

A temporary 10% duty on all imported goods entering the United States was imposed following the Supreme Court decision. The temporary 10% global tariff is set to expire on July 24, 2026. President Donald Trump implemented broad global tariffs nearly 500 days prior to July 23, 2026.

Beyond the bilateral measures, the Trump administration is proposing a 10% to 12.5% tariff on imports from 60 nations alleged to have failed to ban forced labor or restrict imports produced by forced labor. The U.S. Trade Representative identified 54 of 60 investigated economies as having failed to impose or effectively enforce forced labor import prohibitions, with six economies found to have incomplete or weak enforcement mechanisms. The 60 nations targeted by the proposed forced-labor tariffs include the European Union, Mexico, Canada, and China. President Trump stated he would impose a 100% tariff on foreign generic drugs entering the U.S.

Economic analysts have begun to quantify the impact of these layered tariff regimes. The Yale University Budget Lab estimates that U.S. households would spend more this year if the administration activates the new Brazil and Canada tariffs and allows current temporary tariffs to expire. The Yale University Budget Lab estimates that the cost to households would increase if the administration replaces expiring tariffs with new forced-labor duties. The 2026 U.S. tariff measures on Canada and Brazil are projected to increase household costs annually for the average U.S. family, according to Yale University Budget Lab estimates, with potential increase if forced-labor tariffs on 60 nations are implemented.

Marc Goldwein is the senior policy director for the Committee for a Responsible Federal Budget. "President Trump effectively put in place a $3 trillion.. middle-class tax increase" spread over 10 years, Goldwein said. "But I haven’t seen a tremendous amount of backlash," he added.

Federal Reserve Governor Christopher Waller stated in a speech this month that tariffs modestly raised prices and the inflationary effect is largely over. Waller warned that new trade moves could raise inflation again if companies pass price increases to consumers.

The economic backdrop for these decisions includes stagnant industrial metrics. The United States has lost manufacturing jobs since President Trump took office. A quarter of the average factory’s capacity in the United States remains unused.

The implementation of country-specific tariffs under Section 301 and the Tariff Act of 1930 represents a shift in legal strategy after the Supreme Court limited presidential authority under the International Emergency Economic Powers Act. The expiration of the temporary 10% global tariff on July 24, 2026, creates a narrow window for the administration to finalize its new framework, including the proposed forced-labor duties affecting 60 nations.

Household cost projections from the Yale University Budget Lab indicate that the combination of expired temporary tariffs and new levies on Brazil and Canada would increase annual spending per family. If the administration proceeds with the broader forced-labor tariffs, that estimated cost would increase, affecting trade partners such as the European Union, Mexico, and China.