US won’t cut more China tariffs until after presidential election
- Review period gives Washington time to verify Beijing’s adherence to terms of phase one trade deal
- Trump will be able to keep existing levies in place until after voters decide whether he should get second term
Existing tariffs on billions of dollars of Chinese goods coming into the US are likely to stay in place until after the American presidential election, and any move to reduce them will hinge on Beijing’s compliance with the terms of a phase one trade accord, people familiar with the matter said.
The two sides have an understanding that no sooner than 10 months after the signing of the agreement at the White House Wednesday, the US will review progress and potentially consider additional cuts on tariffs affecting US$360 billion of imports from China, the people said, declining to be identified because the matter is private.
The period of review, which is not expected to be specified in the deal’s text, is intended to give the Trump administration time to verify the Bejing’s adherence to the terms of the pact. It will not affect a halving of the 15 per cent tariff on about US$120 billion in Chinese goods announced in December that is still expected to go ahead.
Officials have said before they will release the text of the 86-page agreement in conjunction with the signing and denied that there is a plan to cut duties further.
“The only non-public component of the agreement is a confidential annex with detailed purchase amounts, which has been previously described,” US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin said in a joint emailed response to questions.