The United States is not ready to eliminate tariffs on Chinese imports in the near future, but may be open to trade talks with Beijing, U.S. Trade Representative Dickey said.
The Wall Street Journal reported Sunday (March 28) that the statement was made in Dyche’s first interview since being confirmed by the Senate.
Dyche told the WSJ that she acknowledged that tariffs could cost U.S. businesses and consumers, although supporters said they could also help protect companies from subsidized foreign competition. However, Dyche also warned that “eliminating tariffs” could hurt the economy unless “the change is communicated in some way so that the players in the economy can adjust.
Whether the participants are traders or manufacturers, “the ability to plan for changes that affect their business is critical,” Dyche added. Dyche also said that “no negotiator will give up leverage.
During former President Trump‘s presidency, the U.S. 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. As part of the U.S.-China trade war, the tariffs were imposed to get China to lower its trade barriers. China retaliated by imposing tariffs on $110 billion worth of U.S. goods.
Dyche, 47, is the first Asian-American and woman of color to serve as U.S. trade representative. The confirmation of her nomination by Congress received stunning bipartisan support, including a Senate confirmation vote that passed 98 to 0, the best showing of any of President Biden‘s Cabinet nominees.
Observers note that Dyche is facing pressure from U.S. businesses eager to resolve the U.S.-China trade conflict. The Wall Street Journal reports that the National Foreign Trade Council, a trade association of large exporters, has formed a coalition of more than 30 trade associations representing industries ranging from automobiles and beer to retailers to push for tariff repeal.
The group, called the Tariff Reform Coalition, said, “Rushing to impose higher tariffs without careful analysis has been ineffective in prompting China to reform its practices, while also causing serious economic harm to U.S. companies.”
Dyche expressed some interest in the proposals of free trade advocates such as former Treasury Secretary Paulson and the U.S. Business Roundtable, an industry group made up of the largest U.S. companies. Those proposals argue that tariff elimination should be part of new negotiations with China on subsidies, state-owned enterprises and other structural issues.
“Every good negotiator has leverage that he or she is going to use,” she said. “Every good negotiator keeps all options open.”
Dyche, a former staff member of the Democratic House Ways And Means Committee, worked closely with the Trump Administration on the latest version of the North American Free Trade Agreement (NAFTA), the U.S.-Mexico-Canada agreement ( US.-Mexico-Canada Agreement), the latest version of the North American Free Trade Agreement (NAFTA), was negotiated.
This earned her praise from her predecessor in the Office of the Trade Representative, Robert Lighthizer (Robert Lighthizer), but now she must weigh the different requirements. The U.S. Chamber of Commerce (U.S. Chamber of Commerce) executive vice president Myron Brilliant (Myron Brilliant) said he wants to develop a colorful trade liberalization agenda. Brilliant is hopeful that this vision will be realized.
William Spriggs, chief economist of the AFL-CIO, the largest U.S. union organization, said he is seeking to fundamentally reorient trade away from the “insider deals between highly connected people who pay for a seat at the negotiating table ” model.
Dyche said she is committed to implementing trade policies that focus on individual employees, not just on consumers. In practice, that means focusing trade policy on jobs and wages rather than lower prices and more product choices, she said during her confirmation hearing.
The U.S. government’s China Policy is led by the National Security Council and the State Department. It is unclear how much influence Dyche has had in shaping policy toward China.
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