US prepares new tariffs as temporary global levy nears expiry

US trade envoy Jamieson Greer said Tuesday that the United States expects to act soon on new tariffs affecting dozens of countries, as President Donald Trump's temporary 10 percent global levy is due to expire this week.

The Trump administration has prepared new tariffs targeting 60 trading partners over their alleged failures to act against forced labor. Officials are seeking to rebuild Trump's trade agenda after legal setbacks.

Greer told CNBC that the United States has laws against trading goods made with forced labor, while many other countries either do not have such laws or do not enforce them. He said action was expected soon but did not give a timeline.

Trump imposed a 10 percent global duty this year after a group of his tariffs was struck down by the Supreme Court in February. That temporary levy expires Friday. Analysts expect the planned tariffs linked to forced labor concerns, ranging from 10 percent to 12.5 percent, to replace the temporary duties.

Greer said the new action would cover the vast majority of US trade. The source said the move could renew tensions with major trading partners, including the European Union, China, Taiwan, Vietnam and Japan, which are among the targeted economies. The European Union has previously said it considers tariffs imposed on these grounds to be unjustified.

Trump has also announced other duties and trade investigations. A 25 percent tariff on various Brazilian goods is due to take effect Wednesday. A 50 percent tariff on many Canadian products is due to start on August 19. The United States is also carrying out trade probes involving 16 trading partners over excess industrial capacity.

Washington announced Monday the 50 percent tariff on many Canadian products, starting in 30 days, while US-Mexico talks over a North American free trade pact intensify. Greer is due to travel to Mexico from Wednesday to Friday for discussions linked to the joint review of the US-Mexico-Canada Agreement. Negotiations with Canada have moved more slowly.

The source said some lawyers view Trump's use of Section 338 of the Tariff Act of 1930, described as an untested legal provision, as a way to gain leverage over Canada in USMCA negotiations.

Trade lawyer Dave Townsend of Dorsey & Whitney said Canada has not agreed to a framework trade agreement with the United States, unlike some other countries. He said the higher tariffs appear aimed at encouraging an agreement, retaliating for the lack of one, or both. He said the question is whether the two sides will reach a pact or enter a cycle of escalation and retaliation.

It remains unclear when the United States will announce proposed action after its probes on industrial capacity.