Current Tariffs Expiring This Week
A group of tariffs that President Trump enacted in February is nearing its expiration. Those import taxes, which applied a 10% extra cost on goods from numerous nations, were authorized under Section 122 of the 1974 Trade Act.
So the administration is already working on a replacement.
Jamieson Greer, the U.S. Trade Representative, told CNBC's "Squawk Box" that new tariffs are coming. He said the administration has proposed to use a different law - Section 301 - to put additional duties on goods from roughly 60 economies.
The scope of the planned tariffs is vast.
Why New Tariffs Are Coming
The administration says it has a specific reason for moving to a different trade law. Greer explained that the U.S. bans importing goods made with forced labor, but most other countries either lack a similar law or do not enforce the one they have. That gap, he said, is part of the problem the new tariffs are meant to address.
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"Most don't have a law. Those that do don't really enforce it," Greer said.
Greer framed it as a fairness issue. "That actually illustrates the scale of the problem we're facing," he said.
The Legal Shift
Section 122 allows temporary import surcharges but requires congressional approval for an extension. Section 301, in contrast, gives the President authority to impose duties on countries that engage in unfair trade practices, including forced labor. Greer argued that the gap in global enforcement of forced labor bans justifies the broader tariff coverage. By moving to Section 301, the administration can bypass the need for legislative action and target specific economies based on their trade practices.
Background and Implications
The shift from a flat 10% surcharge to targeted 12.5% duties across 60 economies represents a significant escalation in U.S. trade policy. Nearly all imports - covering everything from consumer electronics to industrial machinery - could be affected. Businesses that rely on cross-border supply chains face potential cost increases and the need to reassess sourcing strategies. Greer's reference to forced labor enforcement highlights a core rationale, but the broad reach of the tariffs suggests the administration is pursuing wider economic objectives as well.
When to Expect Action
Greer declined to provide an exact timeline. He indicated that he must first inform Congress and other interested parties before disclosing the schedule. But he did not leave much room for doubt.
"We expect to see some action soon," he said. "But we do expect action soon."
According to the Financial Times, additional tariffs may be unveiled as early as this week.
The transition from a flat 10% surcharge to a targeted 12.5% levy across 60 economies marks a significant shift in U.S. trade strategy. Businesses that import goods from affected nations will face higher costs, potentially leading to price increases for consumers. The administration's focus on forced labor enforcement, while a core justification, also opens the door for broader trade actions under Section 301, which does not require congressional approval. As Greer prepares to brief Congress, industry groups are closely watching for details on which economies will be targeted and when the new duties will take effect.
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