Three dozen of the most influential business groups in the United States have joined forces to ask the Biden administration to restart negotiations with the Chinese regime and immediately reduce import tariffs. The move was reportedly prompted by a threatening message from the Chinese regime to local business people that it will not move forward on trade issues until the U.S. accepts the Phase One trade agreement.
Business groups representing retailers, chip makers, farmers, and others call on the Biden administration to reduce tariffs on Chinese-made electronics, apparel, and other products paid by U.S. importers, Fox Business reported Friday.
The groups jointly wrote a letter to Katherine Tai, the U.S. trade representative, and Treasury Secretary Janet Yellen, saying Beijing had allegedly met “important benchmarks and commitments” in the trade deal initiated during the Trump era.
“A worker-centered trade agenda must take into account the costs imposed by U.S. and Chinese tariffs on Americans here and at home and eliminate tariffs that harm U.S. interests,” the letter said.
However, reality showed that January 15 marked the first anniversary of signing what promised to be a major trade agreement between the two economic powers, the United States and China. But the communist regime failed to comply with its commitments from the beginning, and the results were not the best, as the South China Morning Post (SCMP) opportunely reported.
In addition, the bilateral relationship worsened month by month throughout 2020 due to the pandemic caused by the Chinese Communist Party (CCP) virus.
The idea of the agreement planned and negotiated by the Trump administration was to end the trade war and develop a new relationship under the principles of “fair and reciprocal trade.”
Both sides pledged to compromise on certain issues. The Asian giant pledged to buy about $200 billion worth of U.S. goods over two years, including $50 billion in agricultural products, $50 billion in energy, and $75 billion in manufacturing.
In turn, the United States halved tariffs on $120 billion worth of Chinese imports to 7.5% and canceled additional levies.
However, one year after signing phase one of the agreement, the Chinese regime has not met its purchase commitments, and the US trade deficit with the Asian power has increased.
With the new administration, the question arose as to how trade relations with the Asian giant would continue and, above all, whether the United States would maintain the tough demands imposed by the previous administration on the Chinese regime, which allowed, among other things, the historical development of the domestic economy in an unusual and explosive process of import substitution.
So far, the Biden administration has not indicated whether it intends to maintain the tariffs on Chinese products or how it will approach the bilateral relationship in the coming months.
As reported by Fox Business, Ms. Tai met privately on Thursday with executives from large West Coast companies during a stop in Seattle. She expressed sympathy for the businessmen’s request that the administration completes a review of trade policies with China. Still, she has not given any details on the developing policy or when it will be released.
For her part, Ms. Yellen has said she views the tariffs as economically damaging. Still, other administration officials have said privately that her comments were not intended to signal a change in U.S. trade policy.