Politico | Companies urge USTR to leave Vietnam currency matters to Treasury
- US Trade Representative Robert Lighthizer’s probe is seen as an intrusion into a policy space that traditionally has been overseen by the Treasury Department
- Many industry leaders fear potential Trump tariffs could hurt their businesses and damage US relations with one of Southeast Asia’s fastest-growing markets
This story is published in a content partnership with POLITICO. It was originally reported by Doug Palmer on politico.com on December 29, 2020.
“Any actions by USTR at this point threatens to disrupt Treasury’s leverage with Vietnam and the ability to restore market balance,” Jerry Cook, vice-president for government and trade relations at HanesBrands Inc, said during a Trump administration hearing into whether the Southeast Asian nation deliberately undervalues its currency for an unfair trade advantage.
US Trade Representative Robert Lighthizer launched the currency probe in October under Section 301 of the 1974 Trade Act, which allows USTR to unilaterally impose retaliatory tariffs in response to what it determines is an unfair foreign trade practice.
The law has never been used to investigate another country’s currency practices, and Lighthizer’s action in the area is an intrusion into a policy space that traditionally has been overseen by the Treasury Department.
