Treasury Secretary Steven Mnuchin disputed claims Thursday that the Trump administration’s tariffs on Chinese goods resulted in shortages of medical supplies in the United States, noting that the tariffs had been waived.
“That’s absolutely just not the case, OK? [U.S. Trade Representative Robert] Lighthizer has waived tariffs on any critical items,” Mnuchin said on Fox Business. “We’ve continued to do that on critical items, so that’s just not the case. And I would say that we’re doing everything to make sure the supply chains stay open.” The Trump administration dropped tariffs on various medical emergency items but only last week after industry executives pressed the USTR to make exceptions.
Mnuchin was responding to a Wall Street Journal op-ed by former U.S. Trade Representative and World Bank President Robert Zoellick, titled “Trump’s Tariffs Leave the U.S. Short on Vital Medical Supplies.” He argued the administration’s tariffs had made it harder for first responders to procure necessary equipment such as masks and sterile gloves. The column said that the tariffs forced the medical industry to hunt for alternative producers and testing of their equipment “when they should be concentrating on getting supplies to those in need. China, in turn, has diverted its sales to other markets.”
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Zoellick noted the administration’s recent tariff changes but said they were too little, too late. “It quietly — and only temporarily — reduced tariffs on a smattering of Chinese medical products. Such half-measures fall far short. If Chinese exporters face multiple demands, they will prioritize countries without tariffs or time-limited tariff suspensions.”
The White House has placed 7.5% tariffs on $120 billion worth of Chinese goods and 25% tariffs on another $250 billion worth of products despite reaching “phase one” of a trade deal with China in December. As a consequence of the dispute, China’s imports dropped $59 billion in 2019, while American imports fell $42 billion.
