U.S. Trade Representative Greer said Washington aims to maintain a stable but recalibrated relationship with China, stressing that bilateral trade must become more balanced, and likely smaller, over time. Greer noted the U.S. goods trade deficit with China has already fallen by about 25%, calling the shift “the right direction.”
Greer also flagged ongoing issues within the U.S.-Mexico-Canada Agreement (USMCA), saying some adjustments have already been made to address emerging challenges. A key concern, he said, is ensuring that Mexico and Canada do not become transshipment hubs for Chinese, Vietnamese or Indonesian exports seeking to bypass U.S. trade restrictions.
The remarks highlight the Trump administration’s continued focus on reshaping supply chains, tightening enforcement of trade rules, and preventing circumvention of tariffs through North American partners.
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Greer’s comments reinforce a continued U.S. shift toward managed trade and tighter enforcement across North America. A push for a smaller China trade footprint adds to structural decoupling pressures, with implications for supply-chain diversification and Asia FX sensitivities. Monitoring of transshipment risks through Mexico and Canada suggests further compliance scrutiny and potential tariff escalations.
