US Tariffs Upgraded: Administration Prepares to Increase Duties Further
The United States has announced that it is preparing to raise its tariffs on a subset of trading partners from an initial 10% to as high as 15%, without naming any specific countries. This news comes after US Trade Representative Jamieson Greer discussed the matter during interviews with Fox Business Network and Bloomberg TV.
In response, Greer emphasized that President Donald Trump intends to maintain tariff levels on Chinese goods at current 10%. The White House plans a proclamation to impose these increased duties as needed, focusing specifically on countries with trade deals who do not conform. Greer highlighted the administration’s commitment to legal processes for such tariffs and noted that any challenges would be met with responses.
Greer revealed ongoing discussions with Chinese officials regarding industrial capacity concerns in China. He pointed out that US government officials have repeatedly raised this issue, noting that unprofitable firms are supported by subsidies from the state. “We don’t intend to escalate beyond the current rates,” Greer reiterated when asked if new tariffs on Chinese goods were possible.
To maintain consistency with existing trade agreements, Greer informed Fox Business about USTR’s intention to open Section 301 investigations into Indonesia’s industrial capacity and fisheries subsidies, aligning these findings with commitments under the deal. The ultimate goal is to establish a tariff rate in line with US expectations.
Furthermore, Greer underscored the effectiveness of historic Section 301 probes, such as those conducted on China, which have withstood legal scrutiny. He also mentioned that newer Section 232 national security investigations, targeting specific industries for potential threats to American technology firms and critical infrastructure, could potentially serve as enforcement mechanisms for recent trade agreements.
In sum, while the US administration aims to maintain current tariff levels, it is preparing to implement increased tariffs on countries with questionable trading practices. The administration’s focus remains on Section 301 investigations and strategic industry-focused probes like Section 232, which have proven durable in past legal challenges.