US Trade Envoy Jamieson Greer is expected to make an announcement on tariffs later today, ahead of the expiration of President Donald Trump's 10 percent global duty. The duty, imposed after the Supreme Court struck down earlier tariffs in February, is set to expire on Friday. The Trump administration has proposed new tariffs targeting 60 economies over forced labor concerns, but a timeline for their imposition remains unclear.
Tariff Landscape
After the Supreme Court's decision in February, Trump replaced the blocked duties with a temporary 10 percent levy on imports. This temporary measure can only last 150 days, meaning it will expire on Friday. The new proposed tariffs, ranging from 10 to 12.5 percent, target goods from major trading partners including China, the European Union, and India.
Uncertain Timeline
Greer has not confirmed whether the fresh duties will be finalized by Friday's deadline. He emphasized that the focus is on fulfilling legal and statutory requirements rather than adhering to a specific timeline. Trade lawyer Ryan Majerus noted that there could be a gap between the expiration of the current duty and the imposition of new ones, potentially causing brief confusion for businesses.
Long-term Strategy
The Trump administration has been exploring options to deploy tariffs flexibly. Section 301 of the Trade Act of 1974, which Greer used to propose duties on numerous countries, offers more flexibility than commonly realized. Ongoing probes under Section 301 on 16 economies over excess industrial capacity could further justify tariff hikes.
EU Expectations
The European Union, which signed a trade deal with Washington, expects the US to honor the commitments outlined in the EU-US Joint Statement. This means tariffs on EU goods are expected to be capped at 15 percent, as per the deal.
