Donald Trump’s former envoy to China says US tariff cuts could come soon

The US may move to lower tariffs on Chinese goods in an attempt to revive trade talks, but Beijing will need to reciprocate if there is to be a deal, according to President Donald Trump’s former envoy to China.

Terry Branstad, who was ambassador during Trump’s first term, predicted there would be “some movement that will reduce the burden and [give] an indication that we want a deal”.

“And then we need a reciprocal response from the Chinese that shows they have an interest in it,” he said, during a discussion with the New York-based asset management firm KraneShares on Wednesday.

“And we’ll see. I don’t know that there will be a deal, but I know that Trump would like to see one at the end of the day … I think Trump wants it to happen quicker and not take years. So we’ll see what happens, but I suspect we’ll see movement within the next year.”

The Wall Street Journal reported on Wednesday that the White House was considering slashing tariffs by more than half on non-strategic Chinese goods, in a week that has also seen an easing in Trump’s tone on China.

While most countries, including many US allies, saw a 90-day pause in Trump’s so-called reciprocal tariffs introduced on April 2, the 145 per cent duties imposed on China were kept in place, bringing the effective rate to about 156 per cent.

According to a White House fact sheet, China now faces tariffs of up to 245 per cent, a figure that includes tariffs ranging from 7.5 per cent to 100 per cent that predate the second Trump administration.

South China Morning Post