U.S. Trade Representative Robert Lighthizer is testifying tomorrow at 10:00am to the House Ways and Means committee; later in the afternoon Ambassador Lighthizer will testify before the Senate Finance Committee.
The New York Times has received an advance copy of USTR Lighthizer’s opening statement, and the liberal publication is apoplectic the Trump administration plans to outline an even more aggressive stance toward the World Trade Organization (WTO).
According to the pearl-clutching Wall St. class, Lighthizer is going to inform congress of Trump/USTR plans to demand tariff reciprocity; and Lighthizer will indeed raise tariffs against any nation that continues to attempt one-sided benefit. [EU will go bananas]
One method to approach tariff inequality would be for the U.S. to lower the import value threshold for non-tariff exemptions. Currently the U.S. does not apply import duties to any product valued under $800. This is a great benefit to China, southeast Asia, and U.S. on-line retailers such as ebay and Amazon; however, the zero tariff threshold hurts U.S. manufacturers because China and other nations do not reciprocate.
It is anticipated that USTR Lighthizer will inform congress the U.S. will lower that import threshold to match the same value level applied by other nations. Obviously the U.S. Chamber of Commerce and the Wall Street multinationals will not like this approach.
WASHINGTON — The Trump administration plans to continue its aggressive trade tactics this year by pushing for a “broader reset” of the tariffs set by the World Trade Organization, a top trade official plans to tell Congress in testimony on Wednesday.Robert E. Lighthizer, the U.S. trade representative, will tell the House Ways and Means Committee that the tariffs the organization sets for various countries are “outdated” and far above the levels charged by the United States, according to a copy of his prepared remarks.The United States “must ensure that tariffs reflect current economic realities to protect our exporters and workers,” Mr. Lighthizer’s prepared testimony says.The remarks suggest that American officials will continue their offensive this year on the World Trade Organization, the international body charged with writing and enforcing trade rules. (read more)
Following the four year pattern of opposition, we can well expect the majority of purchased politicians to stand against the Trump administration efforts. That said, none of the doomsayer tariff predictions ever came true; and President Trump has the support of the majority with him against the United States Congress.
