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U.S. Trade Representative Katherine Tai will announce on Monday that China is failing to comply with the Phase 1 trade deal reached under the administration of former President Donald Trump, sources familiar with the matter told Kayla Tausche of CNBC.
Under the deal, China was supposed to purchase an additional $ 200 billion in U.S. goods over a two-year period, but the nation failed to deliver on that pledge, sources said.
The announcement will represent some of the Biden administration’s strongest pushbacks against China. Tai will deliver remarks on his review of China’s trade policy in Washington on Monday.
It is not known how the USTR will react. Sources told CNBC that the USTR is evaluating potential actions against China for its non-compliance, including possible additional tariffs.
Tai’s speech on Monday will mark the final three months of the agreement, which was signed by Trump in 2019. He called on China to increase its purchases of certain U.S. goods and services from January 1, 2020 to December 31, 2021.
Chinese purchases of U.S. exports through August are estimated to be around 62 percent of the trade deal’s targets, Chad Bown, senior researcher at the Peterson Institute for International Economics in Washington, told Reuters.
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