A Chinese and American national flag hangs from a fence at an international school in Beijing on December 6, 2018. (Photo by Fred DUFOUR/AFP) (Photo by FRED DUFOUR/AFP via Getty Images)
Fred Dufour | Afp | fake images
The United States is taking an analytical approach to its review of whether to maintain tariffs on Chinese goods and will not base the results on any “progress” in US-China trade relations, the US deputy trade representative told Reuters. Sarah Bianchi.
The Biden administration does not anticipate such a breakthrough, but will continue dialogue with China at various levels, Bianchi said in an interview on Saturday at the conclusion of a ministerial meeting of the US-led Indo-Pacific Economic Framework talks.
“We are conducting the review from an analytical perspective. We are not looking at any developments in the trade relationship” with China as part of the review, Bianchi said. “We’re not assuming that will happen.”
Instead, the USTR continues to study industry and stakeholder feedback on the duties by consulting with the US Department of Commerce, Treasury and other agencies to determine which categories make strategic sense, he said.
“We’re looking at what’s economically sound,” added Bianchi, who oversees USTR’s engagement in Asia.
Former US President Donald Trump imposed the tariffs in 2018 and 2019 on thousands of imports from China valued at about $370 billion at the time, after a “Section 301” investigation found that China was it was misappropriating US intellectual property and forcing US companies to transfer sensitive technology. do business.
Currently, duties range from 7.5% on many consumer goods to 25% on vehicles, industrial components, semiconductors and other electronics. Among the main categories that escaped the tariffs were cell phones, laptops and video game consoles.
The review was required by Section 301 of the 1974 Trade Act four years after the tariffs were first imposed and began initial notification steps in May 2022. Bianchi declined to say when the review would be completed. , but added that this was “reasonable”. “at the end of 2023.
USTR extended the tariff exclusions on 352 import categories from China at the end of 2022 for another nine months and they will now expire on September 30. Some trade experts in Washington see that date as a possible decision point in the tariff review.
inflation arguments
When the review began last May, some Biden administration officials spoke in favor of lifting some of the tariffs as the Biden administration struggled to contain high inflation.
US Treasury Secretary Janet Yellen said removing “non-strategic” tariffs would lower costs for specific products, while Trade Representative Katherine Tai argued that the tariffs represent a “significant leverage” on China.
Bianchi noted that inflation-related discussions about fees have died down as inflation has subsided.
Chinese Commerce Minister Wang Wentao raised objections to the Section 301 tariffs as a matter of concern during a meeting with Tai in Detroit on the sidelines of an Asia Pacific Economic Cooperation trade meeting.
Wang’s meeting with Tai and Commerce Secretary Gina Raimondo the day before marked the first cabinet-level exchanges between Washington and Beijing in months amid a series of national security and trade mishaps, including the US takedown of a Chinese spy balloon transiting the continental US.
Bianchi said it was important for the global economy that the United States and China maintain a healthy dialogue, even if they disagree.
“These are the two largest economies in the world and we need to talk at different levels, even if they are difficult conversations,” he said.
“On trade right now, there’s not a lot of similar prospects,” he said of the United States and China. “I’m not sure where it will lead, but I think the talks will continue to be difficult, but I think it’s important that we have them.”