The U.S. could be ‘clever’ to chop tariffs on China, says former commerce negotiator

Greater U.S. tariffs on Chinese language items harm American companies and customers, and it could be “clever” to chop these levies, a former American diplomat and commerce negotiator stated Thursday.

If each nations have been to cut back tariffs on one another, their relationship may enhance, stated Frank Lavin, a former U.S. ambassador to Singapore and undersecretary of Commerce for worldwide commerce.

He informed CNBC {that a} “mutual discount” in tariffs would additionally enable the U.S. to handle longstanding considerations about China’s commerce practices.

Lavin was requested what recommendation he would give to the Biden administration on its coverage towards China.

“I might say do not step away from the problem, there’s some severe commerce points there and I feel numerous President Trump’s criticisms have been legitimate so do not drop that agenda,” Lavin, now chief government and founding father of consultancy Export Now, informed CNBC’s “Road Indicators Asia.”

“However I do assume that in the identical breath it could be clever to take away the tariffs as a result of the tariffs harm American companies, American customers, American employees simply as they harm the Chinese language economic system,” he added.

U.S.-China commerce tensions escalated beneath former President Donald Trump, with each side slapping greater tariffs on one another’s items value billions of {dollars}. The commerce dispute has since spilled into know-how and finance.

President Joe Biden’s administration has signaled that it’s going to proceed to be powerful on China. U.S. Commerce Consultant Katherine Tai stated final week the administration is conducting “a complete overview” of its commerce coverage with China.  

Firms from the U.S. and different nations have lengthy complained about unequal entry to the Chinese language markets, lack of mental property safety and compelled know-how switch.

Chinese language President Xi Jinping has stated Beijing will proceed to work with different nations and minimize tariffs — although he didn’t particularly point out the U.S. by identify.

Nonetheless, Lavin stated the U.S. may maintain Xi to his phrase in pursuing a discount in tariffs and improved relationship.

“So I would say if we will simply have a mutual discount in these tariffs, we’ll have a greater working relationship,” stated Lavin. “After which let’s begin tackling a few of these commerce points one after the other and assist China transfer to world norms.”

— CNBC’s Evelyn Cheng contributed to this report.