Ross discusses trade policy, Trump’s first term, and the future with The Epoch Times.
After President-elect Donald Trump initiated renegotiations of the North American trade pact, concerns about a potential trade war arose. Economists and market watchers worried about escalating tensions between the United States and other countries.
Trump’s announcement of 25 percent tariffs on imports from Canada and Mexico, along with a 10 percent levy on Chinese goods, on his first day in office sparked these fears. The goal was to reduce illegal immigration and drug trafficking.
“I believe the likelihood of a full-scale trade war is minimal,” stated former Commerce Secretary Wilbur Ross in an interview with The Epoch Times.
Ross, who served as Commerce Secretary during Trump’s first term, played a key role in shaping the administration’s trade policies. He supported Trump’s tariff strategies and was involved in negotiating trade deals like the United States-Mexico-Canada Agreement (USMCA), which replaced NAFTA.
While Ross acknowledges the boldness of Trump’s recent actions, he anticipates that the incoming administration will refine these policies in a manner similar to Trump’s first term.
In 2018, Trump imposed tariffs on aluminum, steel, appliances, and electronics. However, Ross notes that adjustments were made, including exemptions for certain countries like Australia, Canada, and South Korea.
During Trump’s presidency, over 2,200 products received tariff exemptions based on specific criteria. Ross expects the new administration to adopt a more cautious approach to trade negotiations.
Incoming officials like Treasury Secretary Scott Bessent have suggested a gradual implementation of tariffs. Bessent believes that Trump’s initial tariff proposals will likely undergo modifications during discussions with trading partners.
Commerce Secretary Howard Lutnick, another Wall Street veteran, has emphasized that Trump’s statements are often broad to convey key points to the public. Ross affirms that while Lutnick will oversee trade negotiations, major decisions will ultimately rest with the president.
The incoming administration’s message, according to Ross, is that more tariffs will be imposed on foreign products, particularly from China. The objective is not to isolate global trade but to encourage fairer trade practices.
“His goal is to create a level playing field,” Ross emphasized.
Ross, who previously studied the auto industry for the Trump administration, recounted how discussions with European auto executives led to increased investments in the U.S. to avoid potential tariffs.
Targeting Trade Agreements
Trump has expressed intentions to renegotiate the USMCA, citing unmet commitments by other nations. Mexico, for instance, has not fulfilled certain obligations outlined in the trade treaty.
Overall, Ross expects the new administration to continue refining trade policies to address current challenges and ensure a more equitable trade environment.
In recent times, the United States has initiated dispute settlement consultations with Mexico concerning the issues surrounding Mexico’s energy reforms. Newly elected Mexican President Claudia Sheinbaum Pardo and her administration are anticipated to introduce a long-term plan to attract private investment for the state-run energy industry’s exploration and production, as reported by SP Global.
Commerce Secretary Ross also highlighted Mexico’s failure to address the politicization of the judicial system, a provision within the USMCA agreement. The country’s recent judicial reforms, which involve electing judges rather than appointing them, have raised concerns about political influence within the courts. This move could potentially violate Mexico’s international obligations under the USMCA, as explained by Arturo Pueblita in a paper for the Wilson Center.
The article also touches on the challenges faced in trade agreements with China, with Beijing failing to meet targets set in the U.S.-China Phase One trade deal. As the Trump administration prepares for negotiations, Secretary Ross believes that the global economic landscape has shifted, providing the United States with an advantage in trade negotiations.
Following discussions with Canadian Prime Minister Trudeau and Mexican President Sheinbaum Pardo, efforts are being made to strengthen border security to address issues of illegal border crossings and migration. President Trump’s conversations with Mexican leaders also aim to address border security and drug trafficking concerns.
Despite differing accounts of the discussions, both leaders are focused on finding solutions to shared challenges. Looking ahead, Secretary Ross is optimistic about the future, drawing on his experience and the outcomes of the previous Trump administration. Please rephrase this sentence.
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