The US intends to maintain tariffs on countries participating in the USMCA.

U.S. Trade Representative Jamieson Greer said on May 26 that the Trump administration intends to maintain tariffs on goods imported from Mexico and Canada, as the U.S. 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 (without Canada's participation), Greer affirmed that the U.S. would continue to impose tariffs, explaining that even for countries like Mexico or others in the same hemisphere, the U.S. would maintain tariff measures as long as large trade deficits persist.

Mr. Greer's 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 aligns with his earlier statements 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 would discuss rules of origin aimed at increasing the U.S. domestic content in goods. However, he did not provide details about the U.S. demands.

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 – a move similar to that of China.

(VNA/Vietnam+)

Source: https://www.vietnamplus.vn/my-du-dinh-duy-tri-thue-quan-doi-voi-cac-nuoc-thuoc-usmca-post1112816.vnp