U.S. Trade Representative Jamieson Greer says President Donald Trump's new tariffs on 60 trading partners will likely leave the economy unchanged, partly because the rates match recent global tariff actions. The duties were imposed over alleged lax enforcement of forced labor bans and still reach 99.4% of U.S. imports. Greer also said a second Section 301 investigation, covering 16 trading partners, could bring further duties.
Trump's new tariffs on 60 trading partners will likely not have an economic impact, U.S. Trade Representative Jamieson Greer said on Monday, partly because the rates of 10% or 12.5% are similar to recent global tariff actions.
The measures are Section 301 duties imposed over the countries' alleged lax enforcement of forced labor bans. Greer told Fox News Channel's Special Report with Bret Baier that they land on a smaller group of countries than a now-expired 10% temporary tariff, which was universal. But the agency has said the forced labor duties would still cover 99.4% of U.S. imports.
Greer sees no effect on the Fed's decision
Asked whether the tariffs would affect the Federal Reserve's monetary policy decision-making this week, Greer answered: "Well, I don't think it has an impact at all". He added that many of the rates are similar, so the new set should not produce an economic effect different from what the U.S. has been experiencing.
A second Section 301 case covers 16 trading partners
USTR is still working on another broad tariff investigation under Section 301 of the Trade Act of 1974, Greer said, this one targeting excess industrial capacity into 16 key trading partners, including China, Vietnam, Mexico and the European Union. He said the agency hopes to finish that investigation soon and will then make a proposal, which could lead to additional tariffs.
Greer points to the Supreme Court's tariff ruling
Greer defended using Section 301, a country-specific unfair trade practices statute, for broad tariffs. He said the U.S. Supreme Court pointed to it in its decision striking down Trump's broad tariffs imposed under a national emergencies law.
During Trump's first term, Section 301 was invoked to impose steep duties on Chinese goods that remain in place despite several court challenges.
Source: Reuters via Investing.com
Trading involves risk.
Risk Disclaimer
