Game of Tariffs: U.S. Manufacturing Declines as China Fortifies with 55% Trade Wall

U.S. Trade Representative Jamieson Greer made a bleak statement on Wednesday that America is losing its grip on high- and low-end manufacturing simultaneously. Greer spoke as concern is mounting about the chronic trade deficit and heightened trade tensions with China, whose combined tariff rate on U.S. imports is now at 55%.

 

Key Points
 

Manufacturing on the Edge: Greer pointed out that the U.S. is not just experiencing declines in basic industries but is also losing badly its high-tech manufacturing base. He blamed some of the losses on unfair foreign trade practices and the absence of reciprocity in foreign markets.
 

Trade Deficit Issues: Greer reaffirmed his policy priority to reverse the nation's $1.2 trillion trade deficit. He urged a realistic means to reindustrialize America and end the decades-long pattern of industrial decline.
 

China's Tariff Wall: The USTR reported that the overall tariff rate of Chinese tariffs on U.S. goods is now 55%, once more making it difficult for U.S. manufacturers and exporters to compete internationally. This rate reflects Beijing's tough effort to shield native industries in the current trade war.

 

Tariff Policies "Bear Fruit": Greer pointed out President Trump's growing tariff agenda is beginning to generate fresh industrial investments in the country—a trend he aims to further accelerate by pushing back against unfair trade practices that have long filled foreign competitors' coffers.

 

Future Political Plans: The remarks precede critical meetings with Congressional leaders as the administration is attempting to gain Congressional approval for policies to stimulate American industry and negotiate more balanced trade agreements.

 

Source ForexLive, TradingView, Markets Today, Reuters.