Jamieson Greer of the Office of the United States Trade Representative (USTR) said the tariffs under Section 301 of the Trade Act, which are being pursued to replace the "10% global tariff," will not affect the Federal Reserve's benchmark interest rate decision.
On the 27th, Greer appeared on Fox News and, when asked by the host whether Section 301 tariffs could make it harder for the Fed to hold rates steady, said, "I see no impact at all." The Fed will hold a Federal Open Market Committee (FOMC) meeting July 28–29 and decide the benchmark rate on the 29th.
Some have raised concerns that renewed military clashes between the United States and Iran have pushed up global oil prices again, which could increase inflationary pressure at this FOMC. The Fox News host's question was intended to ask whether tariffs could spur prices and become an additional variable in the Fed's rate decision.
Greer said, "Existing tariffs targeted the whole world, but now this is a series of tariffs applied to a narrower range, not globally," adding, "Tariff rates are mostly at similar levels, so there will be no different economic impact from what we have experienced so far."
He went on to explain Section 301 tariffs as "aimed at addressing unfair trade practices country by country to resolve these problems and create a level playing field."
Previously, after an investigation under Section 301 of the Trade Act, the Donald Trump administration finalized on the 23rd the imposition of 10% to 12.5% tariffs on 60 countries over "imports of products made with forced labor." Korea was effectively subject to a 12.5% tariff.
Along with this, the USTR is conducting a wide-ranging investigation under Section 301 into the "excess production capacity" of 16 major trading partners, including China, Vietnam, Mexico and the European Union (EU). Greer said, "We will have results soon," signaling additional tariffs.