- I expect China tariff level to remain in place
- We don't intend to escalate tariffs on China
- Trade law on discrimination against US could be helpful in some situations
- New trade investigations will look at excess industrial capacity, forced labour in supply chains
- Tariffs will go up to 15% for some countries
- There will be hearings and consultations with trading partners
- Have been in touch with trade partners to explain how replacement tariffs go along with trade deals
U.S. Trade Representative Jamieson Greer clarified the administration’s trade strategy, signalling a "steady as she goes" approach for China while pivoting to new legal mechanisms to manage broader global trade (using sections 122, 301, and 232). Following the Supreme Court ruling that limited executive tariff authority under the IEEPA, Greer emphasized that the administration will rely on existing deals and specific trade laws to maintain its economic agenda.
Greer affirmed that the US intends to stick to the China deal previously established, with no immediate plans to hike those specific duties further. He noted that the goal is stability rather than escalation.
While the administration will not increase current China-specific levies, it will not be rolling them back either. The focus remains on ensuring Beijing complies with its existing purchase commitments and market access agreements.
To address ongoing concerns, the US is launching a wave of new trade investigations under the Section 301 framework. These "accelerated" probes will go beyond simple deficits to look at systemic issues including excess industrial capacity, forced labour and discrimination against the US.
The most significant shift comes in the form of a 15% temporary surcharge for certain countries, implemented under Section 122 of the Trade Act of 1974. This move acts as a "replacement" for previous tariffs struck down by the Court.
Greer was quick to note that this is not a unilateral wall. The US will hold hearings and consultations with trading partners to ensure transparency. "We have been in touch with trade partners to explain how these replacement tariffs go along with existing trade deals," Greer said, characterizing the 15% rate as a necessary tool to maintain the "reciprocity" that defines current US policy.
