Treasury Secretary Says U.S., China Have Suspended Tariffs
22 May 2018 - 12:10AM
Dow Jones News
By Josh Zumbrun
The U.S. suspended its threat to put tariffs on $150 billion in
imports of Chinese goods while negotiations with China continue,
but President Donald Trump could still impose the tariffs if a deal
between the two countries doesn't progress, Treasury Secretary
Steven Mnuchin said.
"Both parties have agreed to suspend the tariffs," Mr. Mnuchin
said Monday in an interview on CNBC, echoing remarks he gave over
the weekend.
If the negotiations aren't successful, however, "the president
can always put tariffs back on," he said.
Liu He, the Chinese vice premier who led Beijing's delegation to
Washington last week, has also said China is holding off on tariffs
for now. "Both sides agreed to avert a trade war and to stop
imposing tariffs on each other," Mr. Liu said, according to the
official Xinhua News Agency over the weekend.
The U.S. negotiations were focused on proposed tariffs on $150
billion of imported Chinese goods that followed an investigation
from the U.S. Trade Representative on China's trade practices.
These tariffs, which have now been placed on hold, never formally
went into effect. Other U.S. tariffs that are in effect, such as
those on steel and aluminum, would need to be reversed through a
formal process.
Similarly, China had a prospective list of tariffs on $50
billion in U.S. goods that hadn't been formally imposed, but China
also has existing tariffs on a number of U.S. exports that are
formally in place.
There is no specific timetable for the next steps in the
negotiations, Lawrence Kudlow, the director of the National
Economic Council, said on Monday.
"Tariffs are suspended right now, that's a good thing," Mr.
Kudlow said, also speaking on CNBC. "But you cannot remove tariffs
as a negotiating tool or an enforcement tool from this
process."
Their remarks came a day after Mr. Mnuchin and U.S. Trade
Representative Robert Lighthizer both made statements that had left
the exact position of the U.S. unclear.
Mr. Mnuchin said Sunday that the tariffs were suspended, and
hours later Mr. Lighthizer issued a statement emphasizing the U.S.
might still resort to tariffs. Mr. Mnuchin said Monday that he, Mr.
Lighthizer and Commerce Secretary Wilbur Ross are "completely on
the same page."
Mr. Trump touted the weekend deal on Monday morning, tweeting
that "China has agreed to buy massive amounts of ADDITIONAL
Farm/Agricultural Products - would be one of the best things to
happen to our farmers in many year!" He also said, "On China,
Barriers and Tariffs to come down for the first time."
Trade officials say that any surge in U.S. agriculture exports
to China depends on settling the trade dispute and on China
substantially easing tariffs and other trade barriers on U.S.
exports of pork and corn, among other products. Farm groups now are
dealing with Chinese tariffs on sorghum and other products imposed
after the U.S. levied tariffs on Chinese steel and aluminum.
Mr. Ross of the Commerce Department will travel soon to China to
discuss Beijing's commitment to buy more agriculture and energy
exports from the U.S.
Mr. Trump had asked the Treasury to report to him by Monday on
progress it is making in devising rules that would restrict Chinese
investment in the U.S. if Beijing doesn't ease limits on U.S.
companies operating there. Mr. Mnuchin updated Mr. Trump on Monday,
and they discussed options for restrictions, but made no public
statement about the details.
Write to Josh Zumbrun at Josh.Zumbrun@wsj.com
(END) Dow Jones Newswires
May 21, 2018 18:55 ET (22:55 GMT)
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