U.S. Trade Representative Katherine Tai said the United States is not ready to eliminate tariffs on Chinese imports in the near future and will not give up that leverage, but may be open to trade talks with Beijing.
On March 17, the U.S. Senate voted overwhelmingly 98 to none to approve Tai as U.S. trade representative.
The Wall Street Journal reported that this was Dackey’s first interview since being confirmed by the Senate.
Dyche said, “I’ve heard people say, ‘Please get rid of these tariffs.'” But she warned that removing the tariffs could hurt the economy unless the change is made in such a way that the parties involved in the economic activity can make adjustments.
She added that “the ability to plan” for changes that affect their business is critical “whether it’s a company, a trader or a manufacturer.”
Dyche also explained her reluctance to immediately withdraw the tariffs.
“No negotiator is going to give up the leverage that’s available, right?” She said.
The 47-year-old Dyche is the first Asian-American to serve as a U.S. trade representative. As a trade representative, Dyche will have to deal with tough issues abroad and at Home. She is already facing pressure from U.S. companies eager to resolve the U.S.-China trade conflict.
Under the Trump administration, the U.S. has imposed tariffs on about $370 billion in goods from China each year, representing about three-quarters of China’s exports to the U.S. by value. This was done to force the Chinese Communist Party to remove trade barriers, stop stealing intellectual property and stop forcing U.S. companies to make technology transfers. The Chinese Communist Party, in turn, imposed retaliatory tariffs on $110 billion of U.S. goods.
The tariffs remain in place despite the first phase of the U.S.-China trade agreement signed in 2020, largely because the U.S. wants to use them as leverage to ensure that China (the Chinese Communist Party) complies with the terms of the agreement, including stepping up its purchases of U.S. goods and better protecting U.S. intellectual property.
Beijing hopes to convince the Biden administration to eliminate those tariffs, which have made Chinese goods more expensive and caused U.S. companies to shift some of their purchases to Vietnam, Mexico and other countries.
At the same Time, Beijing is falling far behind in its promised purchases of U.S. goods, particularly agricultural products.
During her confirmation hearing, Dyche said she would enforce the U.S.-China trade deal, though she did not say how. The agreement also requires the U.S. Trade Representative’s office to meet with the Chinese side every six months. Although this meeting is two months overdue, no meeting date has been set.
In her first week on the job, Dyche conferred with 14 international trade officials from Japan, France, Mexico and South Korea, among other countries. During the conversations, Dyche cited concerns about unfair trade practices and human rights issues in China (the Chinese Communist Party). However, she did not speak with Liu He, the vice president of the Chinese Communist Party who signed the U.S.-China trade agreement.
Dyche said it will happen naturally when the time is right. She echoes the sentiments of others in the administration who are trying to enlist the support of allies before dealing with the Chinese Communist Party.
While acknowledging that the tariffs could cause some economic damage, Dyche said they are being imposed to “correct an imbalance and unfair trade situation.
She expressed concern about the suggestion by the Business Roundtable, a group of free traders and big business including former Treasury Secretary Hank Paulson, that tariffs should be eliminated as part of new negotiations with the Communist Party on government subsidies, state-owned enterprises and other structural issues. The Business Roundtable expressed concern that tariff elimination should be part of new negotiations with the Communist Party on government subsidies, state-owned enterprises and other structural issues.
“Every good negotiator reserves his or her leverage to use it.” Dyche said, “Every good negotiator is open to all options.”
Dyche previously served as chief trade lawyer for the U.S. House of Representatives Fundraising Committee and worked closely with the Trump Administration in negotiating the U.S.-Mexico-Canada Agreement.
That earned her the praise of her predecessor, Robert Lighthizer (D-N.Y.).
Dyche said she is committed to developing a trade policy that focuses on individual workers, not just consumers. In practice, that means focusing trade policy on jobs and wages, not just lowering prices and increasing product choice.
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