US to Weigh Trade-Deal Tariff Caps in Excess Capacity Probe

US Trade Representative Jamieson Greer said on Tuesday that tariff ceilings agreed in trade deals with other countries will be factored into any new duties that emerge from a pending investigation into excess industrial capacity.

Speaking to reporters before a meeting of Group of 20 trade ministers, Greer said he would not pre-empt the findings of the Section 301 probe, which is expected to focus on excess capacity in China and other major trading partners. He added that Washington places value on the deals it has struck and will take them into account when assessing the investigation's conclusions.

Greer also noted that many of those agreements, once put into effect, help reduce the effects of surplus production capacity in the countries concerned.

The Trump administration has used its year-long chairmanship of the G20 process to spotlight China's excess manufacturing capacity and its reliance on exports to drive growth. At a G20 finance ministers' meeting in Asheville, North Carolina, earlier in September, every member except China backed steps against such policies.

At a roundtable with chief executives and trade ministers on Tuesday, European Union trade chief Maros Sefcovic welcomed the US focus on tackling excess industrial capacity within the G20. He said the EU is pressing for reforms on the issue both in the G20 framework and at the World Trade Organization.

Sefcovic also said the EU is pursuing deeper cooperation with the United States and other allies on critical minerals, aiming to secure supply chains and prevent the materials — whose production is currently dominated by China — from being used as a geopolitical lever.