White House: Discussions on Increasing Global Tariff to 15% Still Ongoing, Dependent on Agreement Situation
The U.S. White House stated that it is still considering raising global tariffs from 10% to 15%, contingent on existing negotiations and agreements.
On the 25th, the Biden administration revealed that discussions are ongoing regarding the potential increase of global tariffs from 10% to 15%. The spokesperson emphasized that the timeline and target countries for this increase depend on the current state of negotiations and agreements with various nations. This signals that the administration might apply differential increases based on trade discussions rather than a blanket confirmation for all countries.
Jamie Grier, the U.S. Trade Representative, elaborated in an interview that while the current tariff stands at 10%, there could be raised tariffs of 15% for some countries, or even higher depending on future outcomes of unfair trade investigations. The legal framework, as permitted under Trade Law Section 122, allows for tariffs of up to 15% for a maximum of 150 days, and raises questions about whether these tariffs can be selectively applied to specific countries or if they must apply uniformly.
Additionally, Grier announced that there would soon be a comprehensive investigation into unfair trade practices under Trade Law Section 301, which will review compliance even with nations that have already established agreements. He cited Indonesia as an example, noting concerns about practices such as overproduction and fishing that will be assessed against existing agreements. This proactive stance indicates the U.S. is intensifying scrutiny of trade practices even as it considers adjusting tariffs based on negotiation outcomes.