Ross speaks to The Epoch Times about trade policy, Trump’s first term, and what’s ahead.
After President-elect Donald Trump fired an opening salvo in his quest to renegotiate the North American trade pact, a chorus of economists and market watchers fears this could be the beginning of a trade war between the United States and the rest of the world.
Trump, taking on Truth Social on Nov. 25, announced 25 percent tariffs on all imports from Canada and Mexico and a 10 percent levy on Chinese goods on his first day in the White House. The purpose behind this decision is to curb the flow of illegal immigrants and drugs.
“I think the danger of an all-out, big trade war is very small,” former Commerce Secretary Wilbur Ross said in an interview with The Epoch Times.
Ross has seen it all before, serving as head of the Commerce Department in Trump’s first four years in the Oval Office.
The Wall Street veteran was a prominent voice in advancing the president’s first-term trade agenda. In addition to championing Trump’s tariff plans, Ross was instrumental in negotiating trade agreements, including the United States-Mexico-Canada Agreement (USMCA), which substituted the decades-old North American Free Trade Agreement, also known as NAFTA.
While he believes that Trump’s latest measures have been bold, he thinks the president-elect and his team will refine these policies comparable to those under Trump 1.0.
In 2018, Trump imposed sweeping tariffs on aluminum and steel imports. Later, he slapped levies on appliances and electronics, like refrigerators, dishwashers, and flat-screen televisions. However, Ross says, the administration would enact modifications, such as granting exemptions to Australia, Canada, and South Korea.
During Trump’s first presidency, the administration approved exemptions to more than 2,200 products for two reasons. The first is if the foreign product is not available domestically. The second is the companies’ appeals that the tariffs would cause significant harm.
When an exemption is granted, all companies importing identical products from foreign markets are excused from punitive tariffs. The Peterson Institute for International Economics (PIIE) estimated that the U.S. Trade Representative approved approximately $12.8 billion in exemptions.
By Andrew Moran
