US Commerce Secretary: No Tariff Pause Likely After China Talks
1min read Commerce Secretary Howard Lutnick has asserted that there is no likelihood of a pause in tariffs on China following the upcoming trade discussions. This statement comes as the US and China engage in talks aimed at reducing the escalating trade tensions between the two major economies. The US has been contemplating reducing its tariffs on Chinese goods, with President Trump suggesting a cut to 80% in a recent post. This potential move is seen as an initial step towards a mutual reduction in tariffs, which could help mitigate the economic strain caused by the trade war.
Lutnick's remarks highlight the US's dedication to maintaining a 10% baseline tariff for countries with balanced trade, while those with trade deficits would face higher tariffs. This policy is part of the administration's broader strategy to ensure fair and reciprocal trade agreements. The US has been actively pursuing trade deals with various countries, including a recent agreement with the UK, which is expected to boost US export markets for agricultural products.
The trade talks between the US and China are scheduled to take place this weekend, with top US officials, including Treasury Secretary Scott Bessent, set to meet with their Chinese counterparts. President Trump has hinted at the possibility of a meeting with Chinese President Xi following the initial talks. China, for its part, has reportedly compiled a list of US goods exempt from its 125% tariffs, aiming to ease trade tensions without making public concessions. However, Trump has defended the China tariffs, claiming that China "deserves it" and would likely absorb the costs.
The economic impact of the tariffs remains a significant concern, with Federal Reserve Chair Jerome Powell emphasizing that while sentiment has deteriorated, the tariff "shock hasn't hit yet." The scale of the disruption will largely depend on how quickly trade deals are reached. The US has been clear that the onus to make offers falls on other countries, reiterating that they do not have to sign deals unless other nations are willing to do so.
As the trade talks progress, the focus remains on achieving fair and reciprocal trade agreements that benefit both the US and its trading partners. The outcome of these talks will have far-reaching implications for the global economy, affecting businesses and consumers alike. The US's stance on tariffs, as articulated by Lutnick, suggests that any concessions will be carefully considered and will prioritize the interests of the US economy.
