Members Join Rubio in Criticizing Trump Over China Talks
- Author: Ronnie Bowen May 26, 2018,
May 26, 2018, 1:38
Those who are in favour of globalisation and borderless trade would have let out a sigh of relief as tensions seemed to calm, but should Senators block any deal Trump puts forward, the potential for a trade-war could well return.
The Trump administration has told Congress that it's reached a deal that would allow Chinese telecommunications giant ZTE Corp.to stay in business, a source familiar with the talks who spoke on condition of anonymity to discuss a confidential matter said Friday.
China's high tariff on vehicles - versus a 2.5 percent U.S. levy - has been a key focus of U.S. President Donald Trump's administration amid a simmering trade standoff between Washington and Beijing. He said the agreement could result in doubling sales of US energy products, which Mnuchin said could mean an increase in sales of USA energy products by $50 billion to $60 billion over the next three to five years.
U.S. Commerce Secretary Wilbur Ross is due to visit Beijing in early June for a further round of meetings.
Schumer said in a statement the White House and Treasury Secretary Steven Mnuchin had been duped by China. The two countries also agreed on "meaningful increases" of US agriculture and energy exports and greater efforts to increase trade in manufactured goods and services. The statement also refers to "consensus" on acting to reduce the trade deficit that the United States runs with China, with more details forthcoming. China's gargantuan $375 billion annual trade surplus with the U.S., according to U.S. Census Bureau figures for 2017, is responsible for almost half of America's total trade deficit and is by far the largest such bi-lateral figure in the world. "I think there are actions we could take, but I don't know how many of my colleagues would agree with the stronger approach", he said.
Melania has kidney surgery
She is expected to remain at the hospital for the rest of the week. "Our wonderful first lady are doing very well". She said, however, the first lady would likely remain at Walter Reed for "the duration of the week" to recover.
"It is likely that this agreement, weak and vague though it is, will serve as grounds to at least delay the imposition of tariffs, " said Eswar Prasad, an economist and trade expert at Cornell University. A USA delegation flew to China to extract concessions from China. That produced a trade imbalance that experts round to $375 billion. Several hours later, U.S. Trade Representative Robert Lighthizer reaffirmed his belief that tariffs remained an important tool to "protect our technology". Either the United States would have to nearly stop buying entirely from China, something that would hurt American consumers. The cut in Chinese auto import tariffs could help Tesla, which has been looking to break into the Chinese market.
The tariff reduction is seen as an olive branch to the Trump administration.
In April, China countered with an announcement that it would be imposing duties on a catalogue of 106 American goods, targeting agricultural products and manufactured goods including beef, soybeans, corn, wheat, cars, chemicals, and whiskey. It comes as the two countries work to avoid a trade war after the tough-talk and tariff escalations last month.
The ban has threatened the viability of ZTE by cutting off access to companies that supply 25 percent to 30 percent of its components. Demonstrate how reliant the Chinese economy is on U.S. suppliers and technology, before easing back and finding a more palatable solution for the USA government.
China's tariff move will be a major boost to overseas carmakers, especially helping premium brands such as Germany's BMW, electric vehicle maker Tesla and Daimler AG's Mercedes-Benz close a price gap on local rivals.