U.S. Trade Representative Jamieson Greer will tell the Senate Finance Committee on Tuesday that nearly 50 countries have approached him to discuss new sweeping tariffs imposed by President Donald Trump.
WHY IT MATTERS
Getting countries to discuss new terms on tariffs could be a sign of progress for the Trump administration, which touched off a global trade war that escalated further on Monday when Trump threatened to increase duties on China and the European Union proposed counter-tariffs of its own.
KEY QUOTES
"Several of these countries, such as Argentina, Vietnam, and Israel, have suggested they will reduce their tariffs and non-tariff barriers," Greer said in written testimony seen by Reuters.
"These obviously are welcome moves. Our large and persistent trade deficit has been over 30 years in the making, and it will not be resolved overnight, but all of this is in the right direction," Greer added.
He said Trump's plans were bearing fruit, mentioning that one automaker had shifted production plans for one vehicle from Mexico to Indiana.
But he warned that there would be some difficulties in the transition.
"We must move away from an economy based solely on the financial sector and government spending, and we must become an economy based on producing real goods and services," Greer said.
CONTEXT
Greer noted in his testimony that the U.S. has lost 5 million manufacturing jobs and 90,000 factories since 1994, when the North American Free Trade Agreement was implemented, with the trend accelerating since China joined the World Trade Organization in 2001.
His testimony made no mention of Trump's threat to add another 50% tariff on Chinese goods on Monday after Beijing's response to a 34% duty announced last week.
