U.S. trade representative lethizer said in a statement that trump is firmly committed to cracking down on unfair trade practices that harm American workers, enterprises, farmers and herdsmen. The use of illegal wood products for export to the U.S. market destroys the business environment and is unfair to U.S. workers and enterprises who abide by the rules and use legal logging. In addition, an unfair exchange rate would hurt U.S. workers and businesses competing with Vietnamese products, which might be artificially priced lower because of the undervalued exchange rate. He said the United States would carefully review the relevant findings and then decide whether to take appropriate measures to respond.
The Wall Street Journal reported on the 2nd that in the exchange rate assessment submitted to the Ministry of Commerce in August this year, the U.S. Treasury Department has identified Vietnams behavior of lowering its own currency exchange rate in 2019, which provides the basis for the Ministry of Commerces decision to impose punitive tariffs on Vietnamese tires in the investigation of anti-dumping and countervailing duties on Vietnamese passenger car tires.
The so-called 301 investigation originates from section 301 of the United States trade act of 1974. The clause empowers the US trade representative to initiate an investigation into the unreasonable or unfair trade practices of other countries and to recommend unilateral sanctions to the president of the United States after the investigation. (end)