US Initiates China Tariff Inquiry Ahead of Trump-Xi Meeting
World Leaders Are to Meet Oct. 30
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The Trump administration is launching a trade investigation that opens the door to new tariffs on Chinese goods, ratcheting up tensions ahead of a highly anticipated summit next week between the countries¡¯ leaders.?
U.S. Trade Representative Jamieson Greer on Oct. 24 announced the opening of a probe into whether China complied with a limited trade agreement reached in 2020 during President Donald Trump¡¯s first term.?
The investigation ¡°will examine whether China has fully implemented its commitments under the Phase One Agreement, the burden or restriction on U.S. commerce resulting from any non-implementation by China of its commitments, and what action, if any, should be taken in response,¡± the agency said Oct. 24 in a statement.
RELATED: A Timeline of US-China Retaliatory Tariffs
The move threatens to exacerbate strained relations between Washington and Beijing and could serve as another point of leverage for Trump in his Oct. 30 meeting with Chinese President Xi Jinping in South Korea.?
The probe is being conducted under Section 301 of the Trade Act of 1974, which allows the administration to adjust imports from countries deemed to have adverse trade practices. Those investigations typically last several months, or more, but serve as the legal basis for the president to unilaterally impose tariffs.?
Trump¡¯s first-term trade deal with China was based in part on Beijing¡¯s pledges to boost purchases of U.S. agricultural products, a source of renewed tension this year.
Liu Pengyu, a spokesperson for the Chinese embassy in Washington, posted on X that China has ¡°Scrupulously Honored the Phase One Economic and Trade Agreement¡± while the U.S. has ¡°Failed to Meet Its Obligations,¡± pointing to a?white paper?the Chinese government published in April.
It's time to review some parts of "China's Position on Some Issues Concerning - Economic and Trade Relations." ?
II. The ??Chinese Side Has Scrupulously Honored the Phase One Economic and Trade Agreement
III. The ??US Side Has Failed to Meet Its Obligations Under the¡ ¡ª Liu Pengyu ÁõÅôÓî (@SpoxCHNinUS)
The U.S. and China have engaged in a tit-for-tat trade fight since Trump returned to office, which has reignited in recent weeks despite a truce that lowered levies between the two countries to allow for more negotiations. That pause on higher tariffs is set to expire Nov. 10.
The Trump administration has hit China with new curbs on exports of technology, while China has moved to restrict the flow of critical rare-earth minerals crucial to many sectors including energy, semiconductors and transportation. Trump has also threatened to add a new 100% tariff effective Nov. 1, if China does not relent on those rare-earth restrictions.
The trade fight has also seen China cut off purchases of U.S. soybeans, hammering American farmers who have seen markets shrink amid the U.S. president¡¯s trade war. Still, Trump has predicted he would reach a deal with Xi on trade and other matters, raising expectations for their long-awaited summit.
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