US tariffs on China on Nov 1 depend on Beijing’s actions, says US trade chief Greer
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The International Monetary Fund on Oct 14 warned that a major escalation in the US-China trade war could slow global economic output and increase inflation.
PHOTO: SCOTT MCINTYRE/NYTIMES
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WASHINGTON – US Trade Representative Jamieson Greer said on Oct 14 that it depended on China whether additional 100 per cent tariffs on its exports to the US would kick in on Nov 1 or earlier, but acknowledged it might be difficult for Beijing to find an off-ramp.
Mr Greer told CNBC that US and Chinese officials met for staff-level talks in Washington on Oct 13, and that there was still a chance to resolve a dispute over critical minerals restrictions.
“We think we’ll be able to work through it, but again, we can’t have a situation where the Chinese keep this regime in place, where they want to have veto power over the world’s high-tech supply chains,” he said.
“I think they have realised that they’ve overstepped.”
Financial markets have been whipsawed in recent days by a sharp escalation in the US-China trade war after US President Donald Trump announced 100 per cent duties on Chinese goods – on top of rates averaging 55 per cent – in retaliation for Beijing’s dramatically expanded export controls on rare earths.
Treasury Secretary Scott Bessent and China’s Commerce Ministry scrambled to calm markets this week, reassuring investors that talks were under way to defuse a major escalation.
The International Monetary Fund on Oct 14 warned that a major escalation in the US-China trade war could slow global economic output and increase inflation.
Mr Greer said Mr Trump was a “dealmaker” and he and Mr Bessent had previously managed to find a path forward with the Chinese in the past.
He said Chinese officials made contradictory statements during the Oct 13 meeting about the purpose of the restrictions.
They asserted both that the curbs were intended as retaliation against the US for other measures, and that they served national security purposes, but could not have it both ways, Mr Greer said.
The US had leverage of its own, he told CNBC, noting that China’s economy was very export-driven, property values were down and unemployment was high.
“Both sides have leverage. We have our own export controls we could impose if we needed to,” he said.
“But that’s not what we’re trying to do. We’re trying to have (a) good relationship with the Chinese, and so we need them to change.”
He said there was still a plan for Mr Trump and Chinese President Xi Jinping to meet, but left open whether it would happen.
“So right now, there is a plan. There’s a scheduled time for that,” Mr Greer said.
“You know, whether it’ll go through or not, I don’t want to pre-commit – either ourselves or the Chinese – but I think it makes sense for people to talk when they can.” REUTERS
