Coronavirus: Donald Trump expected to provide some tariff relief, but not for Chinese imports
- Trade experts say reduction will probably apply only to goods from countries with Most Favoured Nation status
- Business groups and chief executives apply pressure for a tariff reprieve amid coronavirus-related shutdowns
The Trump administration faces growing pressure from hard-hit US companies to delay collecting tariffs on imported goods as efforts to stem the coronavirus send the economy into a tailspin.
But the anticipated move is not expected to apply to some US$360 billion in Chinese imports subject to tariffs as high as 25 per cent as administration hardliners push to maintain pressure on Beijing.
“The administration remains steadfast in its opposition to reducing those specific tariffs” on China trade, said Henrietta Treyz, economic policy director with Veda Partners. “Instead, they’ll be reducing some more rudimentary and perpetual tariffs on nations around the globe.”
On Wednesday, the 300,000-member US Chamber of Commerce weighed in a day after 400 chief executives urged US President Donald Trump to hold off collecting tariffs for up to six months given pandemic-related shutdowns.
“Tariff relief would provide some welcome breathing room for American businesses and consumers,” Myron Brilliant, the business group’s head of international affairs, said in a statement. “Liquidity has emerged as one of the top challenges for businesses of all sizes.”