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USTR Greer says the US has been in touch with trade partners to explain how replacement tariffs will go along with current trade deals, tariffs will go up to 15% for some countries

The comments from USTR Greer indicate a firm stance on tariffs coupled with ongoing dialogue regarding existing trade agreements.

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Global

  • Will put out a federal register notice on investigations.
  • Sections 122, 301 and 232 are alternatives to tariffs.
  • Will report findings and calculate the harm to Americans from trade practices.

China

  • Have discussed excess capacity with China.
  • China understands that we are going to have some level of tariffs.

Canada/Mexico

  • We intend to stick with the China deal.
  • Courts will tell US the time, place and manner of any type of tariff refunds.
  • Talking with Canada and Mexico to avoid economic disruption and reshoring production to the US. 
  • Canadian counterpart is coming to Washington in coming weeks. 
  • Open to Canadian ideas on how to reach a deal.
Context

This suggests a potential escalation in trade tensions, particularly as tariffs increase for some countries, which could impact the USD's strength, create volatility in equities, and influence commodities pricing due to fears of demand disruptions.

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