Commerce Secretary Wilbur Ross said Thursday that the U.S. is unlikely to get a formal deal with China in time to hold off on an increase in tariffs on $200 billion worth of Chinese goods from 10 percent to 25 percent at the beginning of next year, even if a meeting set for next week between President Trump and Chinese President Xi Jinping goes well.
“It’s going to be big picture, but if it goes well, it’ll set the framework for going forward,” Ross told Bloomberg regarding the leaders’ meeting, which will happen in Argentina as part of the G-20 summit. “We certainly won’t have a full formal deal by January. Impossible.”
Administration sources have previously leaked to various media outlets that tariffs covering as much as $257 billion worth of Chinese goods could be announced if no progress is made at the meeting. The U.S. has already hit $250 billion worth of Chinese goods with tariffs ranging from 10 to 25 percent. The existing tariffs are set to hit 25 percent across the board next year.
The White House has expressed cautious optimism that the meeting could ease tensions. China has reportedly delivered a written response to Washington regarding its trade demands, but the details of the response have not been disclosed. Administration officials have pressured China to put its positions in writing, something Beijing has resisted doing as that would limit their negotiating ability.
The U.S. by contrast has prepared a specific list of 142 demands. Ross said it would take the leaders a long time just to get through the items on the list, “let alone to resolve them and let alone to put (the resolutions) on paper.”
“What’ll drive the talks is when two countries feel like they’re ready to do it, and I think getting the midterms out of the way is very useful,” Ross added.
