No plans of lifting $360 Bn trade tariff despite trade deal between US and China
The US seems to have no plans of lifting the trade tariffs with China, despite the Phase-1 trade deal which is all set to be signed on January 15 between the two countries to ease tensions between the two sides. The trade tariffs are worth about $360 billion, or nearly two-thirds of Chinese imports to the US.
"There are no other oral or written agreements between the United States and China on these matters, and there is no agreement for a future reduction in tariffs," Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer said in a joint statement quoted by International media.
The taxes are levied since 2018 and have as a result raised the prices for finished products such as baseball hats, luggage, bicycles, TVs, sneakers, and a variety of materials used in the production process used by American manufacturers, as reported by international media.
The Trump Administration imposed the trade tariffs as a negotiation tactic to curb the Chinese intrusion into American markets and to pressurize China to agree to a new trade deal that addresses unfair trade practices, such as intellectual property theft and forced technology transfers.
The tariffs have reportedly affected the American markets too with manufacturers forced to look for alternative sources for raw materials, affecting the supply chain and buying from manufacturers of other Asian countries.
Because of the tariff war, US businesses have been forced to make decisions about job cuts and raising prices of products.
On the other hand, due to the trade war between two of the world's most powerful economies, China has experienced the lowest level of economic growth in 2019, slowest in the past twenty-seven years.