U.S. Trade Representative Jamieson Greer expressed confidence on Sunday that the Biden administration will uphold the trade agreements it has made with foreign partners, despite a recent Supreme Court ruling that may affect the tariff policies instituted under the Trump administration. In an interview on “Face the Nation,” Greer emphasized that the administration expects its partners to respect the existing deals, noting that no countries have indicated a desire to withdraw from these agreements following the court’s decision.
The Supreme Court ruled on Friday that President Trump lacked the authority to impose unilateral tariffs under the International Emergency Economic Powers Act, a significant federal law from 1977. Nevertheless, Greer indicated that the agreements reached before this ruling were not contingent upon it and asserted that tariffs would persist regardless of the court’s decision. He pointed out that while tariffs authorized under this specific law have been invalidated, other tariffs related to national security and unfair trading practices, defined under Section 301, remain in effect.
In response to the ruling, Trump announced a global tariff increase from an initial 10% to 15%, citing an ongoing review of economic conditions. However, tariffs imposed under Section 122, which also encompasses the global tariffs, are subject to a 150-day limit without congressional approval for extensions, and are capped at 15% of the value of the affected products.
Greer acknowledged the limitations introduced by the recent ruling. He noted that while the administration will continue to investigate and impose tariffs where justified, the processes following the Supreme Court ruling involve more extensive hearings, public comments, and consultations with other nations compared to previous practices under the IEEPA.
Opposition to the administration’s tariff policy has come from both sides of Congress, with recent bipartisan efforts to reverse tariffs affecting Canada. Greer, however, downplayed the significance of these dissenting votes, stating they do not reflect the party as a whole.
European Central Bank President Christine Lagarde weighed in on the situation during her own appearance on “Face the Nation,” expressing concern that the administration’s tariffs could disrupt established trade agreements and business operations in Europe. She highlighted the uncertainty surrounding trade rules as detrimental to investment and consumer costs in the long run, suggesting that businesses would eventually have to pass increased costs to consumers.
This ongoing dialogue reflects the complexities surrounding U.S. trade policies in relation to global partnerships and the consequences of judicial rulings on economic strategies. As the administration navigates these challenges, there remains hope for maintaining stable international trade relations while addressing unfair practices that affect the global market.