US trade chief to consider trade deal tariff caps in excess capacity probe
SPY•U.S. Trade Representative Jamieson Greer said the administration will consider tariff caps negotiated in trade deals as it weighs potential new duties in a Section 301 investigation into excess industrial capacity.
1. Tariff caps in review
Greer said the administration would take trade-deal tariff caps into account when assessing possible outcomes of its pending Section 301 investigation, which is expected to focus on excess capacity in China and other key trading partners. He said some deals could mitigate the effects of excess capacity as they are implemented.
2. G20 discussions
The Trump administration has used its G20 presidency to draw attention to China’s excess production capacity and reliance on exports for growth. At a G20 finance ministers meeting in early September, all member countries except China agreed to take action against such policies.
3. EU cooperation
EU trade chief Maros Sefcovic welcomed the U.S. focus on excess industrial capacity and said the EU was pursuing reforms through the G20 and World Trade Organization. He also said the EU was working toward deeper cooperation with the United States and allies on critical minerals.
