China tariff probe to continue despite Trump-Xi deal, Greer says
The inquiry is being conducted under Section 301 of the Trade Act of 1974
[WASHINGTON] The US will proceed with an investigation that opens the door to new tariffs on goods from China, despite the two nations’ fresh truce, US President Donald Trump’s top trade negotiator said.
US Trade Representative Jamieson Greer last Friday (Oct 31) opened a probe into China’s compliance with a limited trade agreement reached during Trump’s first term. That move was seen as potential leverage for the US president in his meeting with his Chinese counterpart, Xi Jinping.
While the leaders agreed to suspend plans for higher tariffs and stricter export controls during their summit, the investigation is still moving forward, Greer said on Thursday when asked about it during a Fox Business interview.
“You are correct to assume that,” Greer told host Larry Kudlow, a former Trump economic adviser. “We didn’t solve every problem in the US-China relationship today.”
The decision not to suspend the investigation could give Trump a tool to retaliate against China with new tariffs should his deal with Xi fall through.
The inquiry is being conducted under Section 301 of the Trade Act of 1974, which allows the president to place duties on imports from countries deemed to have adverse trade practices. Those investigations typically last several months, or more, but any adjustments made could prove more legally durable than the unilateral levies Trump imposed using emergency powers.
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Those tariffs have been ruled illegal by federal courts and the Supreme Court is set to hear the administration’s appeal in the case next week. If the justices knock down the president’s so-called reciprocal tariffs, he would have to turn to other authorities to raise duties on countries, including China, or go to Congress.
Trump’s first-term trade deal with China was based in part on Beijing’s pledges to boost purchases of US agricultural products, a source of renewed tension this year. A 2024 study commissioned by the National Corn Growers Association and the American Soybean Association said China “fell short” of its obligation to buy US$80 billion in American agricultural exports over 2020 and 2021.
China has committed to buying at least 87 million tonnes of US soybeans over the next several years in the latest deal, according to Agriculture Secretary Brooke Rollins. BLOOMBERG
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