Keep tariffs on China and ‘hold their feet to the fire’ says US trade tsar

Outgoing US Trade Representative Robert Lighthizer’s advice to US president-elect Joe Biden is to keep up the pressure on Beijing

Incoming administration should stick to the phase one trade deal and solve specific issues through dispute settlement process, he says

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US Trade Representative Robert Lighthizer with Chinese vice-premier Liu He in 2019. Photo: AP

Published: 12:00pm, 17 Dec 2020Updated: 11:50am, 18 Dec 2020

The incoming Biden administration should keep up the pressure on China to stick to the phase one trade deal and use tariffs as leverage, according to outgoing US Trade Representative Robert Lighthizer.

In a rare interview late on Tuesday, Lighthizer said Beijing had done a “reasonably good job” in implementing parts of the deal. He also defended the Trump administration’s record in shredding the status quo on trade and imposing unilateral tariffs on US$370 billion worth of Chinese goods.

Beijing signed the phase one trade deal nearly a year ago after months of tariffs, promising to boost purchases of US agricultural and manufactured goods, energy and services by US$200 billion above 2017 levels over two years.

The tariffs have cost US importers US$71.6 billion since they started in July of 2018, according to US customs data. They forced companies to tear up supply chains, disrupted financial markets and slowed economic growth well before the coronavirus pandemic hit.

I would hold their feet to the fire on phase one. I think in some parts [China] have done a reasonably good job, in other parts they haven’t

Robert Lighthizer

Asked what US president-elect Joe Biden should do with the deal when he takes office on January 20, Lighthizer said: “I would hold their feet to the fire on phase one. I think in some parts [China] have done a reasonably good job, in other parts they haven’t.”