Treasury Secretary Steven Mnuchin has proposed rolling back the White House’s tariffs on $200 billion worth of Chinese goods, and says the move would calm markets and make it easier for Beijing to make concessions in upcoming trade talks with the administration.
The proposal is being opposed by other key White House officials.
Mnuchin reportedly made the suggestion in recent discussions with administration officials regarding the next round of talks, according to anonymous sources cited by the Wall Street Journal. “It could be an arrow in the quiver” to use to get concessions, a source told the Journal.
The move is being opposed by U.S. Trade Representative Robert Lighthizer, who will be heading the talks, which are set to begin in Washington on Jan. 30. Lighthizer has argued that rolling back the tariffs will weaken the administration’s hand with Beijing instead.
The White House is under a self-imposed March 1 deadline to reach a deal with Beijing or at least make some progress. The administration has said it will raise the tariffs on the $200 billion worth of goods to 25 percent, up from the current level of 10 percent, if the talks don’t bear fruit.
President Trump has expressed optimism on the talks, repeatedly argued that the tariffs have put enough pressure on China that it will be forced to reach a deal to repair its economy.
