5 Oct 2021
U.S and China Trade Seeks Trade Talks, But With Tariffs
The Index Today
The US has announced to reform its China trade policy and will begin new talks with Beijing on Monday. U.S trade representative Katherin Tai has outlined the new policy which will focus on building on initial trade policy from the Trump Administration. However, the trade policy will continue to keep the present trade tariffs until further discussion.
Kathrine Tai said in a speech, “We will use the full range of tools we have and develop new tools as needed to defend American economic interests from harmful policies and practices.”
She further explained that the current tariffs were placed on around half of the exports to the U.S and no investigative measures will be taken to examine the Chinese trade practices. However, the U.S is expected to begin process for local companies to seek exemption from the tariffs. Many manufactures have put forward complaints about not having any choice but to opt for Chinese manufactured components.
The Biden administration has kept tariffs in place which have angered Chinese officials. Other steps were also taken including the sanctioning of officials over the repression of Muslim Ugyhurs in the nation.
Upon the initiation of trade discussions, Beijing is expected to ask for relaxation of tariffs as well as imposed sanctions. According to experts, the sanctions have far more detrimental effects as compared to tariffs.
©Photo: The New York Times