US Trade Chief Eyes Lower Deficit Through Tariffs

U.S. Trade Representative Jamieson Greer declared on Wednesday that the Trump administration's broad tariff strategy targets to stop the continuous decline of American manufacturing capabilities and reduce the $1.2 trillion trade deficit.

At a reindustrialization summit in Detroit Greer declared that the present trade deficit represented an unsustainable situation which he compared to Monopoly money. The tariff policy achieved its goals according to Greer because General Motors announced $4 billion worth of new U.S. investments.

Greer attributed the decline of American manufacturing to decades of trade liberalization which received bipartisan backing for China's WTO accession. The Trump administration will impose a 10% universal tariff on all imports while applying higher rates to specific countries such as China which faces a 55% tariff.

According to Greer countries can prevent tariffs by establishing production facilities within U.S. borders and Trump personally wrote letters to trading partners which specified tariff rates. The letters explicitly state that domestic production will avoid all tariff payments.

Since his February appointment Greer has made his most comprehensive policy statements which demonstrate his strategy to redirect global supply chains toward U.S. domestic manufacturing despite potential trade conflicts.