Biden administrator reportedly “relies” on Trump-era tariffs on China



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Biden administration to “rely” on existing tariffs on billions of dollars in Chinese imports as part of strategy against Chinese government for failing to honor commitments made under phase agreement 1 of the Trump era, U.S. Trade Representative Katherine Tai said in an interview with Politics Thursday.

Why is this important: Tai’s comments come as the Biden administration seeks a new business strategy with Beijing while navigating calls from U.S. companies to lift tariffs.

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  • China is behind on its pledge to buy an additional $ 200 billion in US goods, according to Politico.

  • With the Phase 1 deal signed by former President Trump set to expire at the end of 2021, the Biden administration will have to decide whether to renegotiate or go in a different direction, Politico notes.

What she says: Trump’s tariffs “had the effect of getting a lot of people’s attention,” Tai told Politico.

  • She added that they are a “tool for creating the kind of effective policies, and [are] something we can build on and use to defend the interests of the American economy, American workers, American businesses and our farmers as well. “

  • “I think it will be important to look at China’s performance with China, and it will be the critical first step in my mind,” Tai said.

The relations of the United States with the European Union will be the key to their strategy, she added.

  • “I think there are all reasons for us, due to our common interests, to build on the relationship between us,” Tai told Politico. “For himself, because he is inherently precious, but also to build on this relationship on a collaborative basis to meet the challenges that we both experience.”

The big picture: Tai was confirmed in March and pledged that she “would not hesitate to use the mechanics of the deal when China failed to honor its commitments.”

What to watch: Tai will deliver a speech on US-China trade relations at the Center for Strategic and International Studies in Washington on Monday, according to Politico.

Go further: Trump’s Chinese-American transformation

Editor’s Note: The title and headline have been changed to clarify Tai’s comment that she would “build on” existing tariffs.

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