US-China trade war: Trump’s trade tariffs to remain ‘for the moment’ but Beijing expected to adhere to commitments
- US Treasury Secretary Janet Yellen told CNBC on Thursday that tariffs on China put in place by the Trump administration will be ‘kept in place for the moment’
- China pledged to buy US$200 billion in additional US goods and services over two years, but Beijing fell 42 per cent short of its target for last year
The United States will keep tariffs imposed on Chinese goods by the former Trump administration in place for now, but will evaluate how to proceed after a thorough review, Treasury Secretary Janet Yellen told CNBC on Thursday.
“For the moment, we have kept the tariffs in place that were put in by the Trump administration … and we’ll evaluate going forward what we think is appropriate,” Yellen said, adding that Washington expected Beijing to adhere to its commitments on trade.
Asked if tariffs worked, Yellen hesitated, then said, “We’ll look at that.”
The White House last month said it would review all national security measures put in place by former president Donald Trump, including an interim trade deal with Beijing.
We’re in the process of evaluating what our approach should be toward China, but there are a range of issues where we see unfair practices
“We’re in the process of evaluating what our approach should be toward China, but there are a range of issues where we see unfair practices,” Yellen added in the interview with CNBC, citing concerns about China’s behaviour on trade, forced technology transfers, and subsidies to high-technology industries.
“We want to make sure that we do address and hold China to its international obligations in these areas.”
There were also areas where the two countries needed to cooperate, she said, such as working to end the pandemic and combating climate change.
In a report on Thursday, the US Agriculture Department (USDA) said the value of US farm exports to China will touch US$31.5 billion in the federal financial year ending September 30, the highest ever.
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The department raised its estimate 17 per cent from November, citing a surge in shipments and sales in the quarter from October through to December, most notably in corn.
“We see new opportunities around the globe, and we expect better sales almost everywhere we turn,” Jason Hafemeister, a USDA trade official, said in a presentation on Thursday. “Look at China just blowing off the chart.”
China has been scooping up American crops at the fastest pace in decades to feed a rapidly expanding hog herd.
That has fuelled a rally in crop prices, with futures prices for corn and soybeans reaching multi-year highs in Chicago. The Asian nation will remain the largest US agricultural market this year, followed by Canada and Mexico.
