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Tariffs on China Imports Emerge as Hurdle to Trade Deal

WSJ Original article ›
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U.S. strategy has shifted to keeping tariffs on Chinese imports intact as an enforcement mechanism to make sure China keeps to its commitments made in negotiations, says WSJ. U.S. trade negotiator Mr. Lighthizer sees the latest tariffs as leverage, and that tariffs would be removed only when China keeps its commitments made to the U.S. Initially Lighthizer opposed the move for additional tariffs imposed on September 1. Now he accepts the strategy to use tariffs as leverage.

Mr. Trump told the Economic Club of New York that if no deal is reached in phase one then the U.S. will "substantially raise those tariffs, they are going to be raised very substantially." Because China is seen as not willing to provide written commitments with enforcement provisions the U.S. strategy has shifted to making the tariff removal an enforcement mechanism. President Trump has committed on the campaign trail to correct misalignment in trade with China. He makes the final decision in negotiations and use his negotiating style. 

China sees making commitments on stopping all subsidies as affecting its sovereignty and its industrial model of state sponsored capitalism since opening in the 1990's to trade with the world.
Both sides are looking for ways to gain the maximum concessions in Phase 1 of the trade deal as it is very uncertain whether any further progress can be made given the positions on each side, say experts.



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