Investing.com - The United States plans to impose tariffs on its North American free trade partners and faces significant trade issues with Canada, U.S. Trade Representative Jamieson Greer said Tuesday.

"We're going to have tariffs as long as we have a giant trade deficit," Greer said at a forum. "The reality is we've spent the past year and a half going to countries telling them we have to have some level of tariff."

Greer said President Trump is concerned about the U.S. trade deficit with Mexico. The U.S. will impose tariffs on Mexican goods as long as the country maintains a large trade deficit, he added.

In upcoming USMCA negotiations, officials will discuss changing rules of origin to enhance U.S. content, Greer said. The USTR is negotiating with Mexico on a bilateral basis and also speaks to Canada.

Countries in the region will receive preferential treatment, Greer noted.

The U.S. continues to have trade challenges with Canada, and only Canada and China have retaliated against Trump's tariffs, Greer added