▲ Jamieson Greer, United States Trade Representative (USTR)
Jamieson Greer, the United States Trade Representative (USTR), stated on local time October 1 that countermeasures against overproduction, which have been under review targeting countries like China, will be announced in the coming weeks.
According to the Nihon Keizai Shimbun (Nikkei) on October 2, Representative Greer made the remarks during an interview with Nikkei, Axios, and other outlets in Milwaukee, Wisconsin, the previous day.
Greer stated, "We have no intention of quietly accepting overproduced goods. The United States will take action," adding, "In the coming weeks, we will make public our findings regarding the issue of overproduction."
This is interpreted as keeping counter-measures in mind, such as imposing additional tariffs over the overproduction issue.
During the interview, Greer cited electric vehicle sales competition as an example, pointing out that excessive competition, referred to within China as "involution" (destructive, cutthroat price wars), is taking place.
He argued, "China itself acknowledges the overproduction problem to some extent," and added, "They call it involution, but the fundamental problem is overproduction."
Following the U.S. Supreme Court's ruling invalidating reciprocal tariffs, the Donald Trump administration launched investigations into 16 economic entities, including China, South Korea, the European Union, Japan, and India, concerning overproduction and forced labor under Section 301 of the Trade Act.
Subsequently, in July, a "forced labor tariff" of 10% to 12.5% was imposed on 60 economic entities, including South Korea and China, while the "overproduction tariff" has not yet been announced.
Last month, through a summit meeting, the U.S. and China agreed to extend their trade truce—which was set to expire in November—by two months, and to lower tariffs on U.S. agricultural products and coal, as well as Chinese toys and home appliances.
Therefore, if the U.S. imposes tariffs on China citing overproduction, China could push back.
Addressing this, Greer expressed the view that the trade truce measures and overproduction countermeasures are separate issues, emphasizing, "Most of the tariffs currently imposed on China for various reasons, such as unfair trade or security, will remain in place."
Greer also expressed the perception that Japan has an overproduction issue.
He noted that Japan is "keeping zombie companies that should go bankrupt alive," and stated, "These various factors lead to overproduction, harming the people here in Milwaukee."
(Photo: AP, Yonhap News)
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