US Trade Representative Greer introduces policy process for US tariffs
After months of on-again, off-again tariff proposals that spawn out of US President Donald Trump's social media accounts, newly-minted US Trade Representative (USTR) Jamieson Greer has attempted to smooth down the worst edges of the Trump administration's jagged policy proposals.
Greer took over the top spot as USTR at the end of February, and has begun the heavy lifting of trying to claw back some of the volatility that markets have been struggling with as a result of Donald Trump's roughshod trade policy strategy.
USTR Greer has reinstated formal channels for US businesses and stakeholders to provide the White House with direct feedback on incoming tariff plans, which include President Trump's often-reiterated plans to impose sweeping "reciprocal" and "sectoral" tariffs on April 2nd.
Tariffs FAQs
Tariffs are customs duties levied on certain merchandise imports or a category of products. Tariffs are designed to help local producers and manufacturers be more competitive in the market by providing a price advantage over similar goods that can be imported. Tariffs are widely used as tools of protectionism, along with trade barriers and import quotas.
Although tariffs and taxes both generate government revenue to fund public goods and services, they have several distinctions. Tariffs are prepaid at the port of entry, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and businesses, while tariffs are paid by importers.
There are two schools of thought among economists regarding the usage of tariffs. While some argue that tariffs are necessary to protect domestic industries and address trade imbalances, others see them as a harmful tool that could potentially drive prices higher over the long term and lead to a damaging trade war by encouraging tit-for-tat tariffs.
During the run-up to the presidential election in November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy and American producers. In 2024, Mexico, China and Canada accounted for 42% of total US imports. In this period, Mexico stood out as the top exporter with $466.6 billion, according to the US Census Bureau. Hence, Trump wants to focus on these three nations when imposing tariffs. He also plans to use the revenue generated through tariffs to lower personal income taxes.
Author
Joshua Gibson
FXStreet
Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.
