Washington
CNN
—
US Trade Representative Jamieson Greer on Wednesday continued to defend President Donald Trump’s aggressive trade agenda as even higher tariffs went into effect for dozens of countries and trade tensions with China reach a fever pitch.
Trump’s tariff hike is the sharpest ever on data going back 200 years, Fitch Ratings told CNN, which will likely result in higher inflation and weaker economic growth, according to most economists.
Greer reiterated that the US trade deficit is an “emergency” that warrants Trump’s historic overhaul of US trade policy, but he said the president is still open to negotiating with countries. Trump’s top trade official said he recently spoke with his counterparts from the European Union, South Korea, Ecuador and Mexico.
Greer told Senate lawmakers on Tuesday that Trump’s blanket tariffs are necessary to combat the overall US trade deficit, even if the stock market languishes and long-time allies are caught in the crossfire. Trump’s top trade official said the tariffs aim to address foreign countries’ so-called non-trade barriers, which includes regulations that don’t favor US companies.
Meanwhile, US and China are deep in a tit-for-tat trade war. China was hardest hit from Trump’s latest tariffs, grappling with at least 104% in new duties. Beijing retaliated swiftly Wednesday with 84% tariffs on US imports.
“Almost all countries have announced that they’re not going to retaliate against the United States, obviously we have China that has made its own choice,” Greer said. “They’ve always given us a hard time, they’ve always limited our access over there and they’re doubling down on that path, that’s an issue of Chinese agency.”
This story is developing and will be updated.
