Trump Administration Proposes 10% Tariffs on Canada, Mexico and EU Until Late July
Updated
Updated · POLITICO · Jun 3
Trump Administration Proposes 10% Tariffs on Canada, Mexico and EU Until Late July
3 articles · Updated · POLITICO · Jun 3
A 10% tariff proposal would hit imports from Canada, Mexico and the EU under a U.S. forced-labor trade action, with the rate set to expire in late July.
The administration cast the levy as a temporary bridge while the U.S. Trade Representative finishes Section 301 investigations tied to forced labor practices.
July 6 is the deadline for written comments, and USTR plans public hearings on July 7 before deciding whether to finalize the duties.
The forced-labor case sits alongside a separate USTR probe into excess manufacturing capacity covering 15 economies, including China, Japan, Mexico, the EU and Vietnam.
With tariffs hitting an 80-year high, is the US risking global trade stability for domestic manufacturing gains?
Will new US tariffs curb forced labor or mainly raise costs for American consumers and small businesses?
U.S. Trade Policy in Turmoil: $133 Billion Tariff Refunds, Judicial Showdowns, and the Section 301 Shift
Overview
Recent court decisions have dramatically changed U.S. trade policy. The Supreme Court ruled on February 20, 2026, that President Trump’s tariffs under the International Emergency Economic Powers Act (IEEPA) were illegal, leading to mass refunds for importers. In response, the Trump Administration tried to use Section 122 tariffs, but on May 14, 2026, the Court of International Trade found these were also unauthorized. Lawsuits from states and businesses followed, but the CIT decision is not final, so refunds for Section 122 tariffs are not yet available. This legal back-and-forth has created uncertainty for businesses and trade policy.