According to the latest information, the US will maintain the tariffs imposed on its two neighboring countries, Mexico and Canada, while the list of Chinese goods eligible for tariff reductions will be subject to public consultation.

On May 26, U.S. Trade Representative Jamieson Greer stated that the Trump administration intends to maintain tariffs on goods imported from Mexico and Canada, as the world's largest economy begins negotiations to revise the U.S.-Mexico-Canada Trade Agreement (USMCA).

Speaking at an event hosted by the Council on Foreign Relations (CFR) in Washington ahead of bilateral talks with Mexico, which would exclude Canada, Greer affirmed that the U.S. would continue to impose tariffs.

Representative Greer also explained that, even for countries like Mexico or others in the same hemisphere, the U.S. will maintain tariffs as long as large trade deficits persist.

These statements indicate that the USMCA agreement, which has been in effect for the past six years, will no longer be a tariff-free trade agreement. This is consistent with previous statements by Mr. Greer to business leaders in Mexico last month, in which he affirmed that tariffs on automobiles and steel would remain in place under the revised USMCA.

US and Mexican negotiators are expected to meet this week in Mexico City to launch the first formal rounds of talks, focusing on revising the rules of origin within the bloc and economic security issues.

In a conversation with Michael Froman, former U.S. Trade Representative under former President Barack Obama's administration and currently head of the CFR, Greer expressed his desire for the U.S. trade deficit with Mexico to decrease, while also hoping Mexico would voluntarily raise its tariffs on goods imported from outside North America.

According to data from the U.S. Census Bureau, although the overall U.S. merchandise trade deficit decreased by more than 30% last year to $202.1 billion, its trade deficit with Mexico increased by nearly 15%, to $196.9 billion.

Mr. Greer stated that during these negotiations, the parties will discuss rules of origin aimed at increasing the domestic content of goods in the U.S. market. However, he did not provide details about the specific demands from the U.S. side.

Furthermore, if Mexico and other countries in the region can reach an agreement with the U.S. on increasing tariffs on imported goods from outside, this would make it easier to apply tariff preferences to partners within the bloc.

However, Greer noted that the Trump administration's issues with Canada have gone far beyond typical trade disagreements, and it is now difficult to predict how the two sides will resolve these rifts.

While other countries and the European Union (EU) accepted certain tariffs imposed by the US, Canada chose to retaliate.

Also related to US tariffs, Representative Greer said the government will conduct a public consultation on which Chinese goods could have their tariffs reduced.

Previously, the US and China had agreed to establish a joint "Trade Council" to identify a list of non-strategic goods worth approximately $30 billion that the two countries could reduce or eliminate tariffs on in the initial phase.

Mr. Greer stated that an official announcement regarding this matter would be issued soon.

When asked what benefits the U.S. gained from the summit between President Donald Trump and Chinese President Xi Jinping in Beijing – beyond the sale of 200 Boeing aircraft and the $17 billion agricultural purchase agreement – Greer expressed satisfaction that the U.S. had maintained its tariff measures against China.

The official added that the tariffs the U.S. imposes on Chinese goods are likely to remain higher than those applied to other countries.

According to Greer, the US has accepted the reality that there will be no comprehensive, groundbreaking reforms to the way the Chinese political system operates, including related economic elements; however, the two sides can still implement some controlled trade practices.

The US Trade Representative also noted that, prior to the US-China summit, there had been predictions that President Trump would make significant concessions, but he affirmed that this did not happen.

Mr. Greer emphasized that the US continues to implement its plan to maintain strategic stability, keeping current tariff levels in place, while striving to maintain a controlled trade approach to a certain extent, and that the US continues to receive supplies of rare earth minerals from China.

Source: Vietnam.vn

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