The US Trade Representative believes that the new round of tariffs will not have an impact on the economy

U.S. Trade Representative Grier believes that the new tariffs imposed by President Trump due to the lax enforcement of the ban on forced labor by 60 trading partners will not have an impact on the economy.

Reuters reported that Greer said during an interview with Fox News Channel on Monday (July 27th) that the 10% or 12.5% new tariffs imposed on 60 economies last week are similar to the 10% temporary tariffs previously imposed by the US and now expired. Moreover, compared with the 10% temporary tariffs that were previously of a universal rate, the new Section 301 tariffs only target a smaller range of economies.

When asked whether these tariffs would affect the Federal Reserve's monetary policy decision this week, Greer said: "I don't think it will have any impact at all."

"We have introduced a set of tariffs that target a relatively narrow range and do not cover the entire world. Many of the tax rates are quite close, so they should not have an impact similar to the economic effects we are currently experiencing." However, the US Trade Representative Office stated that the new tariffs will still cover 99.4% of imported goods in the United States.

Greer said that the US Trade Representative Office is continuing to advance another extensive tariff investigation carried out under Section 301 of the 1974 Trade Act. The investigation targets the industrial overcapacity issues of 16 major trading partners such as China, Vietnam, Mexico, and the European Union. He said, "We hope to conclude this investigation as soon as possible and propose specific solutions." He added that this might lead to these economies being subject to additional tariffs.

On February 20th this year, the US Supreme Court ruled that Trump's imposition of "equivalent" tariffs on trading partners last April, in violation of the 1977 "International Emergency Economic Powers Act" and beyond his presidential authority, was unconstitutional. Trump then invoked Article 122 of the 1974 Trade Act and announced a 10% temporary tariff on the global market, valid for 150 days. This tariff measure expired on July 24th.

On July 24th, the Office of the United States Trade Representative invoked Section 301 of the 1974 Trade Act, citing "negligence in preventing forced labor", and imposed a 10% or 12.5% tariff on 60 economies.