WEBVTT - USTR Jamieson Greer Talks Tariffs, Says Swiss Talks Challenging 0:00:02.720 --> 0:00:07.240 Bloomberg Audio Studios, podcasts, radio news. 0:00:08.200 --> 0:00:12.000 Jamison Greer is joining us now, Jamison, Ambassador, thank you 0:00:12.039 --> 0:00:13.880 so much for being with us. I know you've been 0:00:13.920 --> 0:00:17.360 incredibly busy. I can imagine you haven't slept much. I 0:00:17.440 --> 0:00:21.040 am curious how much we're seeing the end of negotiations 0:00:21.360 --> 0:00:23.919 or the beginning of the end, as there still seem 0:00:23.960 --> 0:00:26.000 to be some loose ends to be tied up. 0:00:27.640 --> 0:00:29.920 Well, I would say that, you know, we've spent the 0:00:29.920 --> 0:00:33.559 past one hundred and twenty days negotiating with dozens and 0:00:33.560 --> 0:00:36.640 dozens of countries, and with some of these countries the 0:00:36.680 --> 0:00:38.560 deals have been good enough that the President's been willing 0:00:38.600 --> 0:00:41.440 to accept them. With other countries, they're just going have 0:00:41.560 --> 0:00:44.680 a tariff. But we have you know, you can look 0:00:44.720 --> 0:00:46.400 at some of the information that's gone out there. We 0:00:46.400 --> 0:00:48.520 have fact sheets, We have a joint statement with Indonesia 0:00:48.520 --> 0:00:50.680 that give some details. You know, we'll be finishing the 0:00:50.680 --> 0:00:53.640 paperwork in the next weeks and maybe a couple of months, 0:00:53.960 --> 0:00:56.000 but these deals are pretty much set. 0:00:56.680 --> 0:00:59.040 They are set right. We wouldn't make an agreement of less. 0:00:59.080 --> 0:01:00.920 We all knew the contra of it, and the countries 0:01:00.960 --> 0:01:03.440 knew it, and it's an exciting time because the President 0:01:03.440 --> 0:01:06.319 has essentially reset the global trading system, and so we'll 0:01:06.360 --> 0:01:08.760 be you know, finalizing everything that's been agreed to on 0:01:08.840 --> 0:01:11.600 paper and then monitoring compliance going forward. 0:01:11.600 --> 0:01:13.880 And Messagreer, can you help us understand how you landed 0:01:13.880 --> 0:01:16.720 on some of these rates, Specifically a country like Switzerland. 0:01:16.800 --> 0:01:20.000 It went from thirty one percent on Liberation Day April 0:01:20.040 --> 0:01:23.119 second to now thirty nine percent, even though you and 0:01:23.480 --> 0:01:28.440 your colleagues were in negotiations with the Swiss trading partners. 0:01:29.680 --> 0:01:29.960 Sure. 0:01:30.040 --> 0:01:33.240 Well, So, first of all, the rates are largely determined 0:01:33.280 --> 0:01:35.759 by the trade deficit of a country with the United 0:01:35.840 --> 0:01:38.480 States and what the country's willing to do to address 0:01:38.480 --> 0:01:41.840 that trade deficit from Switzerland. You know this is surprising 0:01:41.840 --> 0:01:43.840 to some to hear, but we have nearly forty billion 0:01:43.880 --> 0:01:48.040 dollar trade deficit with Switzerland for a country of nine million. Now, 0:01:48.080 --> 0:01:51.080 we value our relationship with Switzerland, certainly, but during our 0:01:51.120 --> 0:01:54.280 discussions with them, you know, we weren't able to reach 0:01:54.320 --> 0:01:56.720 agreement on the best way to reduce that trade deficit 0:01:57.720 --> 0:02:00.320 at all. Right, they ship enormous amounts of pharmaceuticals to 0:02:00.400 --> 0:02:03.280 our country. We want to be making pharmaceuticals in our country, 0:02:03.880 --> 0:02:06.480 so this is a challenging situation, and so we have, 0:02:06.640 --> 0:02:08.639 you know, high tariffs, not just on Switzerland, but many 0:02:08.639 --> 0:02:11.160 countries where we weren't able to fully resolve a path 0:02:11.200 --> 0:02:13.520 forward on reducing the trade deficit and opening markets. 0:02:13.639 --> 0:02:16.320 My understanding was that the US in Switzerland actually had 0:02:16.360 --> 0:02:19.000 a negotiated text and it was just waiting on sign 0:02:19.040 --> 0:02:21.040 off from President Trump. Is that accurate. 0:02:22.000 --> 0:02:23.239 I think that's an overstatement. 0:02:23.440 --> 0:02:25.280 I mean that the reality is all of these countries, 0:02:25.320 --> 0:02:28.200 you trade back and forth paperwork and then you take 0:02:28.200 --> 0:02:30.360 it back to your leaders to get guidance from them, 0:02:31.120 --> 0:02:33.519 and so nothing's agreed and till everything's agreed, That's what 0:02:33.560 --> 0:02:36.880 every trade negotiator knows. So you know, the reality is, 0:02:36.919 --> 0:02:38.880 we negotiate with lots of countries. Listen, there are a 0:02:38.880 --> 0:02:40.280 lot of countries that didn't get the deal that we've 0:02:40.280 --> 0:02:42.320 been negotiating with, and they, of course, they all want 0:02:42.360 --> 0:02:44.440 a deal. They all want to deal with the United States. 0:02:45.160 --> 0:02:48.079 So I can understand that. You know, folks may want 0:02:48.120 --> 0:02:50.400 to try to manifest a deal in the last minutes, 0:02:51.000 --> 0:02:51.560 but we just have. 0:02:51.520 --> 0:02:53.320 To do it's right for America, and the President understands 0:02:53.360 --> 0:02:53.639 that too. 0:02:53.800 --> 0:02:56.119 I'm thinking of other countries like Taiwan which that rate 0:02:56.200 --> 0:02:59.760 went down, India, Switzerland. Of course, we know you were 0:02:59.760 --> 0:03:03.760 in negotiations with so between now and August seventh, could 0:03:03.800 --> 0:03:05.840 some of these countries that you spent a lot of 0:03:05.880 --> 0:03:08.360 time with your counterparts get a deal? 0:03:09.560 --> 0:03:12.919 Well, that's not my focus. I feel like we've been 0:03:12.960 --> 0:03:16.519 able to get everything set on August first. Of course, 0:03:16.560 --> 0:03:18.040 any country that wants to talk to us, they can 0:03:18.040 --> 0:03:19.679 always talk to us, and I'm sure some will be 0:03:19.720 --> 0:03:22.600 eager to find ways to reduce the deficit, open their markets, etc. 0:03:23.400 --> 0:03:27.160 But we're really focused right now on implementing the deals 0:03:27.160 --> 0:03:28.000 that have been reached. 0:03:28.360 --> 0:03:32.320 Well, on implementing those deals. Representative, you mentioned that you 0:03:32.360 --> 0:03:35.840 would be looking and monitoring them for any violations. How 0:03:35.840 --> 0:03:38.400 will this administration judge what is a violation and what 0:03:38.440 --> 0:03:39.960 the consequences of that would be. 0:03:41.040 --> 0:03:45.040 So, for example, you know, we put out a fairly 0:03:45.080 --> 0:03:49.120 detailed joint statement with Indonesia and we're finalizing the underlying agreement, 0:03:49.320 --> 0:03:51.360 and in there you can see that they've made commitments 0:03:51.400 --> 0:03:52.800 on terariff levels where they're can. 0:03:53.040 --> 0:03:54.320 Remove all of their tariffs. 0:03:54.640 --> 0:03:57.080 They've made commitments on non tariff barriers with respect to 0:03:57.360 --> 0:04:00.880 you know, agricultural inspections and the way they you know, 0:04:00.920 --> 0:04:03.480 treat certain digital trade and so our office, which has 0:04:03.560 --> 0:04:05.839 hundreds of people, the offs of the gust Trade representative, 0:04:06.280 --> 0:04:08.400 they watch this and they make sure that Indonesia actually 0:04:08.440 --> 0:04:10.640 does what it's supposed to do, and if they don't, 0:04:10.680 --> 0:04:12.960 the president has his terr of authority. I mean, all 0:04:13.000 --> 0:04:15.800 of the deals are premised and the modified rates for 0:04:15.840 --> 0:04:18.760 these countries are premised on them actually opening their market, 0:04:19.120 --> 0:04:21.760 making the investment and purchase commitments they've agreed to, and 0:04:21.800 --> 0:04:23.600 if you don't, you can have the tariffs go back 0:04:23.600 --> 0:04:24.120 into place. 0:04:24.200 --> 0:04:26.279 This is this is basic trade enforcement. That's what we 0:04:26.320 --> 0:04:27.719 intend to do here, Ambassador. 0:04:27.839 --> 0:04:29.560 Right now, there are a number of countries coming out 0:04:29.600 --> 0:04:31.800 and saying this is part of a negotiation and they 0:04:31.839 --> 0:04:35.000 plan to keep talking with the team over in the 0:04:35.040 --> 0:04:38.560 Trade Trade Organization and trade representatives from the United States. 0:04:38.680 --> 0:04:42.120 Is that just messaging to their own political constituents or 0:04:42.200 --> 0:04:43.000 is that reality? 0:04:44.000 --> 0:04:46.799 Well, well, listen, they certain they certainly have their domestic 0:04:46.839 --> 0:04:50.839 constituents they have to talk to. You can be sure 0:04:50.960 --> 0:04:52.880 that I woke up this morning to a number of 0:04:52.880 --> 0:04:55.960 trade ministers texting me and emailing me, and I'm sure 0:04:55.960 --> 0:04:59.279 they're reaching out to my colleague Secretary LATINX Secretary Vesson 0:04:59.560 --> 0:05:02.560 et Set And my job is to talk to these folks. 0:05:02.600 --> 0:05:04.520 I'm always going to talk to these folks, and you know, 0:05:04.520 --> 0:05:06.440 if they have proposals, you know, I'll talk to them 0:05:06.440 --> 0:05:07.040 and I'll. 0:05:06.880 --> 0:05:07.680 Brief the president. 0:05:08.240 --> 0:05:11.360 You know, we're focused on implementation and doing, you know, 0:05:11.400 --> 0:05:13.359 what's right to change the trading system to one that 0:05:13.360 --> 0:05:14.599 benefits American workers. 0:05:14.880 --> 0:05:17.920 How much are you also hearing from US companies concerned 0:05:17.920 --> 0:05:21.240 about certainty and whether they're going to get clarity on 0:05:21.360 --> 0:05:23.520 exactly what the rates are going to be, whether they 0:05:23.560 --> 0:05:26.000 will stick, whether there will be adjustments, and how some 0:05:26.040 --> 0:05:28.760 of these things will work with trans national shipments of 0:05:29.080 --> 0:05:30.679 getting penalized forty percent. 0:05:31.920 --> 0:05:35.520 So so with respect to certainty, you know, President Trump 0:05:35.600 --> 0:05:38.720 has been talking about a new tariff program. 0:05:38.520 --> 0:05:41.239 For for literally years, decades. 0:05:41.279 --> 0:05:43.560 In some instances, you know, he has tariffs from his 0:05:43.600 --> 0:05:45.840 first term that are still in place. So sometimes when 0:05:45.880 --> 0:05:47.960 companies say we want certainty, what they mean is we 0:05:48.000 --> 0:05:52.560 want a different outcome, right, and you know by by putting, 0:05:52.880 --> 0:05:54.920 you know, the market has baked in a lot of 0:05:54.920 --> 0:05:57.440 the tariffs we put in, you know, the new tariffs 0:05:57.440 --> 0:05:59.400 that we issued last night, are firm. That's why we 0:05:59.440 --> 0:06:01.400 put it out the very clear list. Everyone can see 0:06:01.440 --> 0:06:05.039 it and understand, which retract a transhipment that's always been illegal, 0:06:05.520 --> 0:06:07.560 and so we're just going to put an additional forty percent 0:06:07.600 --> 0:06:11.280 tariff on that. So you know, I understand that there 0:06:11.279 --> 0:06:13.360 are going to be ede cases where companies have to 0:06:13.440 --> 0:06:15.520 change their supply chains and no one wants to do that. 0:06:15.560 --> 0:06:17.839 They just want status quo. But we can't have the 0:06:17.839 --> 0:06:20.320 status quo. The status quo is what led to offshoring 0:06:20.360 --> 0:06:22.480 and the loss of some of our key industries. So 0:06:22.680 --> 0:06:24.840 during that supply chain shift, you know, that can be 0:06:24.960 --> 0:06:27.200 challenging for some companies. And I talk to a lot 0:06:27.240 --> 0:06:29.720 of these folks. I wanted to understand the presence trade policy. 0:06:30.000 --> 0:06:33.080 I want to hear about any unintended consequences. But the 0:06:33.120 --> 0:06:36.160 presence trade policy is moving forward and we're shifting from 0:06:36.200 --> 0:06:39.479 a seventy year policy based on purely efficiency to a 0:06:39.480 --> 0:06:41.360 new policy based on fair and balance trade. 0:06:41.600 --> 0:06:42.840 And the world is agreeing with US. 0:06:42.920 --> 0:06:45.880 Investor agree what about the unintended consequences of what's going 0:06:45.920 --> 0:06:49.040 on with the sectoral tariffs on autos? The Ford CEO 0:06:49.160 --> 0:06:53.520 was on Bloomberg Television yesterday talking about the price disadvantage 0:06:53.560 --> 0:06:57.200 compared to auto companies if they're making a car in 0:06:57.279 --> 0:07:00.720 Japan because of the input cost of twenty percent on 0:07:00.760 --> 0:07:03.160 those inputs that they need to make the car coming 0:07:03.200 --> 0:07:06.360 into the United States versus the fifteen percent right that 0:07:06.480 --> 0:07:09.760 Japan now has. What's the point of the auto sectoral 0:07:09.920 --> 0:07:13.440 tariff if basically it's going to be bilateral now with 0:07:13.520 --> 0:07:15.720 country by country. 0:07:15.560 --> 0:07:19.240 So first of all, you know, there are only a 0:07:19.280 --> 0:07:22.480 handful of countries that export cars to us, right essentially, 0:07:22.640 --> 0:07:25.120 you know, Germany, Japan, in a couple of countries of 0:07:25.120 --> 0:07:27.960 the European Union. We also have Canada, Mexico, and we 0:07:28.000 --> 0:07:30.840 had our domestic producers, you know, choose over a couple 0:07:30.880 --> 0:07:33.280 of decades to offsho a lot of that production to Mexico. 0:07:33.680 --> 0:07:37.400 And so naturally there is some some challenge as as 0:07:37.400 --> 0:07:40.520 they continue to reshore that. And we understand that, right, 0:07:40.720 --> 0:07:42.920 I mean, our goal is long term. We're not looking 0:07:42.960 --> 0:07:45.520 at quarterly earnings as policy makers. We're looking at a 0:07:45.520 --> 0:07:47.560 way to make sure that we have a strong, robust 0:07:47.640 --> 0:07:50.640 industrial base here that provide good jobs for our workers 0:07:50.840 --> 0:07:53.640 and support the national security. So you know, we're in 0:07:53.680 --> 0:07:57.480 constant contact with the domestics with the unions and everybody. 0:07:57.800 --> 0:08:00.880 And you know, I understand that the the auto companies 0:08:00.880 --> 0:08:04.720 are receiving a credit for content that's made in America, 0:08:05.080 --> 0:08:05.920 which is how it should be. 0:08:05.920 --> 0:08:07.400 That's what we're trying to incentivize. 0:08:07.440 --> 0:08:09.680 When you're looking and you're thinking long term, are you 0:08:09.760 --> 0:08:14.760 preparing for Supreme Court ruling against using AEPA for these tariffs? 0:08:14.800 --> 0:08:16.680 And if so, what's the plan be. 0:08:18.480 --> 0:08:20.560 So the case is at the Federal Circuit right now. 0:08:20.600 --> 0:08:23.720 We had the arguments yesterday, you know, lots of questions, 0:08:23.720 --> 0:08:26.280 a lot of preparation. Dog did a great doj did 0:08:26.280 --> 0:08:28.520 a great job. We had a great team out there. 0:08:28.720 --> 0:08:31.640 We feel very confident in the case. You know, if 0:08:31.680 --> 0:08:33.920 there's still questions coming out of the Federal Circuit or 0:08:34.280 --> 0:08:36.720 further litigation that goes to the Supreme Court, we're confident 0:08:36.720 --> 0:08:39.719 there that this statue clearly says the President has the 0:08:39.720 --> 0:08:42.600 authority to regulate imports. That's the language, you know, not 0:08:42.640 --> 0:08:45.920 my words, it's a statute statutes language. You know, in 0:08:45.960 --> 0:08:49.439 case there's a national emergency, the Presence declared a national emergency. 0:08:49.640 --> 0:08:52.120 So we feel confident. You know, if it goes the 0:08:52.160 --> 0:08:54.840 other way, then we'll manage that. The reality is the 0:08:54.880 --> 0:08:58.000 countries understand the type of leverage that President Trump has created. 0:08:58.080 --> 0:08:59.880 That's why they're doing these deals, and they're going to 0:09:00.280 --> 0:09:01.760 regardless of what happens in litigation. 0:09:02.320 --> 0:09:03.839 That's where I wanted to finish. And we just have 0:09:03.880 --> 0:09:05.880 a couple of minutes. We are out of time with you, 0:09:05.960 --> 0:09:08.240 I know, but I am curious what the game plan 0:09:08.480 --> 0:09:11.680 is should there be some sort of overruling of IEPA. 0:09:11.760 --> 0:09:13.920 Do you already have section two thirty two and others 0:09:13.960 --> 0:09:14.480 lined up? 0:09:15.920 --> 0:09:16.079 Well? 0:09:16.240 --> 0:09:18.559 Well, listen, we always have all kinds of plans, and 0:09:18.600 --> 0:09:21.319 I'm not going to go deep into our strategy here, 0:09:21.520 --> 0:09:25.040 mostly because we're pretty confident on the current plan. But 0:09:25.120 --> 0:09:27.040 we will do whatever it takes to make sure that 0:09:27.080 --> 0:09:29.960 the President can continue to rectify the trade deficit and 0:09:30.040 --> 0:09:32.600 change the global trading system. And this is a historic thing. 0:09:33.120 --> 0:09:34.440 This is once in a hundred years that you have 0:09:34.480 --> 0:09:36.800 the chance to reorder global trade like this, and we're 0:09:36.840 --> 0:09:38.880 doing it, and we'll use whatever tools aren't necessary to 0:09:38.920 --> 0:09:39.160 do it. 0:09:39.400 --> 0:09:41.920 US Trade Representative Jamison Greer, thank you so much for 0:09:41.960 --> 0:09:42.520 being with us.