US, China have no arrangement for future tariff cuts, says Lighthizer, Mnuchin


by   |  VIEW 205
US, China have no arrangement for future tariff cuts, says Lighthizer, Mnuchin

Adding further strains on to a friable “Phase One” US-China trade deal, implementation and preparation of which had still been remained in a foetal period, US Treasury’s Steven Mnuchin and USTR (US Trade Representative) Robert Lighthizer, said in a joint statement on Tuesday, the 14th of January 2020, that, the war-struck nations had no agreement to cut tariffs in future as part of the “Phase One” trade deal, raising possibilities of a persistent tariff hike on Chinese imports at least until US Presidential election in November this year.

As questions were raised on prior occasions on whether the “Phase One” US-China trade deal had been an illusion to obliviate market catastrophes, US Chamber Vice President said in a statement in the Chinese capital city of Beijing yesterday (January 13th) that a US-China deal might have helped market lower the bleeding, but it would not be able to brush aside fears of a full-fledge trade spat in a near-term outlook.

Aside from that, latest comment from the US President Donald Trump that a “Phase Two” trade deal with China might need to wait until November US Presidential election added to investors’ worries further.

Meanwhile, clearly stating that there had not been any kind of accord to reduce tariffs in future or tariff roll back as part of the “Phase One” trade deal, Lighthizer and Mnuchin said on Tuesday (January 14th), “There are no other oral or written agreements between the United States and China on these matters, and there is no agreement for future reduction in tariffs. Any rumours to the contrary are categorically false. ”