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Kawala Xie

The US may move to lower tariffs on Chinese goods in an attempt to revive trade talks, but Beijing will need to reciprocate if there is to be a deal, according to US President Donald Trump’s former envoy to China.
Terry Branstad, who was ambassador during Trump’s first term, predicted there would be “some movement that will reduce the burden and [give] an indication that we want a deal”.
“And then we need a reciprocal response from the Chinese that shows they have an interest in it,” he said, during a discussion with the New York-based asset management firm KraneShares on Wednesday.
“And we’ll see. I don’t know that there will be a deal, but I know that Trump would like to see one at the end of the day … I think Trump wants it to happen quicker and not take years. So we’ll see what happens, but I suspect we’ll see movement within the next year,” he said.
“I think we’ll see some deals between other countries first, but hopefully in the not too distant future, we’ll see something significant with China as well.”
The Wall Street Journal reported on Wednesday that the White House was considering slashing tariffs by more than half on non-strategic Chinese goods, in a week that has also seen an easing in Trump’s tone on China.
While most countries, including many US allies, saw a 90-day pause in Trump’s so-called reciprocal tariffs introduced on April 2, the 145 per cent duties imposed on China were kept in place, bringing the effective rate to about 156 per cent.
According to a White House fact sheet, China now faces tariffs of up to 245 per cent, a figure that includes tariffs ranging from 7.5 per cent to 100 per cent that predate the second Trump administration.
However, after a few rounds of tit-for-tat increases – which included 125 per cent in new levies on US goods imposed by Beijing – Trump indicated that he would be willing to cut tariffs on China “substantially” in exchange for a “fair deal”.


Beijing has maintained its tough stance, promising to “fight to the end” against the tariffs. On Thursday, there was a further tit-for-tat exchange, this time over trade talks – with Trump’s claim that they were taking place firmly rejected by China.
In the discussion on Wednesday, Branstad was asked about growing fears that the US-China stand-off could lead to further escalation on the financial front.
Some analysts have suggested that Beijing could weaponise its US$784 billion holdings of US Treasury bonds, for example, while Washington could depreciate the dollar or delist Chinese firms from its market – a power that derives from legislation enacted in 2020.
The US Holding Foreign Companies Accountable Act allows the Securities and Exchange Commission to delist a Chinese stock if the company is deemed to be non-compliant with audit requests for two consecutive years.
Branstad did not directly answer whether he thought the US might exercise capital controls, instead emphasising the need for Chinese firms to be transparent.
“Chinese companies have the responsibility to disclose the risks that American companies are required to, to be listed on the exchanges,” he said.
“We need to make sure that whoever is auditing those companies is doing what they need to do to see that there is disclosure and accurate information about their financial conditions.”


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China

Diplomacy

According to Terry Branstad, there may be some movement from the White House but Beijing will need to reciprocate


According to Terry Branstad, there may be some movement from the White House but Beijing will need to reciprocate.


United States

Donald Trump

Donald Trump’s former envoy to China says US tariff cuts could come soon

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}According to Terry Branstad, there may be some movement from the White House but Beijing will need to reciprocate

According to Terry Branstad, there may be some movement from the White House but Beijing will need to reciprocate