On Thursday, December 4th, the US Trade Representative Jamieson Greer called for shrinking the trade scale with China to achieve trade balance. He emphasized the need to strengthen enforcement of the US-Mexico-Canada Agreement (USMCA) and urged both Canada and Mexico not to become export hubs for China and Southeast Asian countries.
Greer made these remarks during a conference in Washington DC, stating that the United States aims to maintain a stable but adjusted relationship with China. He highlighted that bilateral trade must become more balanced over time and is likely to decrease in scale. Greer pointed out that the US trade deficit with China has already decreased by about 25%, calling this shift the “right direction.”
He warned that there are internal issues within the USMCA that need to be addressed to prevent Mexico and Canada from being used as export hubs for Asian manufacturers.
Having been involved in the negotiations of the US-Mexico-Canada Agreement during President Trump’s first term, Greer noted ongoing issues within the agreement and adjustments being made to address new challenges, such as tariffs on foreign cars, which are helping to correct these problems.
He stressed the importance of ensuring that Mexico and Canada do not serve as transshipment hubs for products from China, Vietnam, or Indonesia to evade US trade restrictions.
When asked about the continued effectiveness of the USMCA, Greer stated that it is US law, passed by Congress, and that Canada and Mexico are the largest export destinations for the United States.
Greer’s comments reflect the Trump administration’s continued efforts to reshape supply chains, enhance trade rule enforcement, and prevent other countries from circumventing tariffs through North American partners.
His remarks reinforce the trend of the United States pushing for trade control and enforcement in the North American region. The pressure to reduce the scale of trade with China intensifies the structural decoupling, which will impact supply chain diversification and sensitivity to Asian currency markets. Monitoring the risks of transshipment through Mexico and Canada indicates the need for further compliance reviews and potential risks of tariff escalation.
(Some parts of this article were referenced from the report by the US financial website investinglive)