USTR Tai Claims That Industry Consultations on China Tariffs Will Be "Robust"

US Trade Representative Katherine Tai said on Thursday that her agency's consideration of punitive tariffs on Chinese imports would be a "rigorous" consultation process that will solicit input from a broad variety of industry stakeholders and examine possible economic consequences.

Tai told reporters in Ottawa alongside Canada Trade Minister Mary Ng that tariff decisions would not be made "in a vacuum."

Tai committed to "concentrate on the critical nature of this process and the critical nature of hearing from all of our stakeholders throughout the economy."

The USTR announced in a Federal Register notice on Wednesday that it will conduct a statutory four-year review of the initial "Section 301" tariffs on Chinese imports it imposed in 2018 in response to a dispute between the Trump administration and Beijing over China's intellectual property and technology transfer practices.

From May 7 to July 5, the USTR will solicit industry views on the first batch of Chinese industrial imports worth $34 billion, and on a second batch worth $16 billion from June 24 to August 22.

When asked whether she views the tariffs as critical leverage in enforcing China's commitments, including a "Phase 1" trade deal negotiated by the Trump administration in early 2020, Tai stated that she was focused on the long term.

"It is critical for us to concentrate on a long-term, successful plan that will enable us to compete with China in this global climate and during the very disruptive time that we are now experiencing, which is inflicting pain to the average American," Tai added.

Recent statements by Deputy National Security Advisor Daleep Singh and Treasury Secretary Janet Yellen on the deflationary effect of tariff reductions fueled speculation that the administration was considering a course correction.

On Monday, Tai said that all options were on the table to combat increasing inflation, including tariff reductions on Chinese imports, but that any policy move should be guided by medium-term objectives.

Among these objectives is the development of a more robust, enduring global economy that benefits both workers and consumers, she noted.

Regarding trading with Canada, Tai said that dairy problems were particularly challenging. The US has expressed worry over Canada's allotment of dairy import quotas under the US-Mexico-Canada Agreement (USMCA).

USTR said in a recap of her conversation with Ng that Tai emphasized the critical importance of Canada fully adhering to its USMCA obligations, notably those related to dairy and access to its domestic retail market.

Additionally, Ambassador Tai raised worry about Canada's planned digital service tax and Underused Housing Tax, according to the US Trade Representative.