The Trump administration is intensifying its outreach to top U.S. business groups on a developing trade deal with China as optimism grows that the White House can reach an agreement to avoid higher tariffs.
The U.S. Chamber of Commerce, the Business Roundtable, and the National Association of Manufacturers have all met recently with U.S. Trade Representative Robert Lighthizer to discuss the issue. In December, for example, Lighthizer joined the manufacturing group’s executive committee meeting and talked one-on-one with CEO Jay Timmons.
The meetings follow months of opposition from the Chamber and fellow industry groups to the White House’s double-digit tariffs on steel and aluminum imports, as well as levies on $250 billion in Chinese goods. Despite their distaste for the duties, manufacturers and others have long championed a broader trade deal with China.
“It’s increasingly clear that a long-term strategy will be needed if our country is to tackle our challenges with China comprehensively and achieve the best outcomes for American workers and American enterprise,” Timmons wrote in a letter to President Trump in January 2018. “I urge you to consider pursuing a truly modern, innovative and comprehensive bilateral trade agreement with China that wholly restructures our economic relationship.”
The Chamber “meets regularly with officials in both D.C. and Beijing,” a spokeswoman said. The Business Roundtable supports the “efforts to negotiate reforms that liberalize the Chinese market,” and the group meets regularly with administration officials, a representative said. A spokesperson for the U.S. Trade Representative didn’t immediately respond to request for comment.
The Trump administration and China reached a 90-day detente late last year to allow for talks on a broad trade agreement addressing long-standing U.S. concerns like the theft of intellectual property and forced technology transfers. The White House has pledged to raise existing tariffs on $200 billion in Chinese goods from 10 percent to 25 percent, as well as extend levies to an additional $267 billion in product if a deal is not reached by March 1.
Deputy U.S. Trade Representative Jeffrey Gerrish and other U.S. officials met this week in Beijing with Chinese counterparts to discuss the terms. In a statement released on Wednesday, the trade representative said the delegation “conveyed President Trump’s commitment to addressing our persistent trade deficit and to resolving structural issues in order to improve trade between our countries.”
The White House’s talks with businesses on its China strategy may reflect the need for support from the Chamber, manufacturers, and others to convince Congress to approve a separate update to the North American Free Trade Agreement, known as the United States–Mexico–Canada Agreement or USMCA.
The deal faces an uphill battle in the Democrat-controlled House of Representatives. Speaker Nancy Pelosi, D-Calif., in December alluded to possible changes her party would seek, noting that increased enforcement measures for labor and environmental rules would be necessary.
In a sign of how intense those discussions will be, several Republican senators last year urged Trump to try to push the deal through before the end of 2018 to avoid negotiations with Democrats.
“We are concerned that if the administration waits until next year to send to Congress a draft implementing bill, passage of the USMCA as negotiated will become significantly more difficult,” the lawmakers wrote.
