US readies new global tariff wave

WASHINGTON: The United States is preparing a new round of tariffs that could affect dozens of trading partners as temporary global duties imposed by President Donald Trump are due to expire this week, according to comments from trade envoy Jamieson Greer.

Greer told CNBC on Tuesday that more tariff action is expected soon, though he did not give a timeline. The administration has been assembling fresh levies aimed at around 60 trading partners, with the measures tied to allegations that other countries have failed to address forced labour in supply chains.

Trump earlier introduced a 10 per cent global tariff after several of his duties were struck down by the US Supreme Court in February. That temporary levy expires on Friday, and analysts expect the new plan to replace it with rates ranging from 10 per cent to 12.5 per cent.

The proposed tariffs would widen the reach of Washington’s trade pressure campaign and raise the risk of retaliation from major economies. Countries that could face a 10 per cent rate include Canada, the European Union, Mexico, Taiwan and the United Kingdom, while goods from more than 40 other large economies, including China, India and Japan, could be hit with a 12.5 per cent levy, according to the feed summary.

Greer said the US has legal restrictions against importing goods made with forced labour, while many other countries either lack similar rules or do not enforce them effectively. The European Union has previously described similar tariff action as unjustified.

The move comes amid a broader escalation in Washington’s trade disputes. Last week, the US announced a 25 per cent tariff on certain Brazilian goods, and on Monday it unveiled a 50 per cent tariff on many Canadian products that is set to take effect in 30 days.

Canadian Prime Minister Mark Carney said on Tuesday that Ottawa was considering “all options” and that both sides had agreed to intensify talks in the coming weeks on a possible deal. US trade envoy Greer is scheduled to visit Mexico from Wednesday to Friday for discussions linked to a review of the US-Mexico-Canada Agreement, while negotiations with Canada have moved more slowly.

Some trade lawyers view Trump’s reliance on a rarely used legal provision, Section 338 of the Tariff Act of 1930, as a way to increase pressure on Canada during USMCA talks. Lawyer Dave Townsend of Dorsey & Whitney said the tariffs appear designed either to push for an agreement or to respond to the absence of one, warning of a possible cycle of escalation and retaliation.

Trump also told reporters on Tuesday that the planned Canada tariffs were not related to earlier threats over wildfire smoke that had drifted into the United States.

Separately, Washington’s planned 25 per cent tariff on Brazilian goods is due to begin on Wednesday. The measure has drawn a strong response from Brazil, where officials and business groups say the tariffs could hit exports worth more than $11 billion. Some products, including beef, coffee and certain aircraft parts, are expected to be exempt, along with goods not produced in the United States.

This report is based on a monitored public feed and reflects the details made available in the source item.

Source: Dawn Business - https://www.dawn.com/news/2017431/us-readies-new-global-tariff-wave