US Yellen: "Too Early to Withdraw High Tariffs Demanded by China"

U.S. Treasury Secretary Janet Yellen stated that it is "premature" to lift the high tariffs imposed on China by the former Trump administration. However, she added that a way to gradually ease U.S.-China tensions must be found.

[Image source=AP Yonhap News]

According to Bloomberg and other sources, Secretary Yellen made these remarks on the 16th (local time) during a meeting with reporters in Gandhinagar, India, where she attended the G20 Finance Ministers meeting. China had previously expressed concerns to Secretary Yellen during her visit to Beijing about the high tariffs and other U.S. economic sanctions on China, urging their removal.

On the day, Secretary Yellen confirmed that she had discussed the high tariffs with senior Chinese officials during her visit to China. She said, "It would be useful to find ways to gradually ease them over time," adding, "This is probably an area where we can make progress."

However, Secretary Yellen stated, "At least at this moment, I want to say that using this (U.S.-China tensions) for gradual easing is premature," signaling that immediate tariff removal measures will not follow. She pointed out, "The U.S. imposed tariffs due to concerns about China's unfair trade practices," and "those concerns remain."

She also reiterated the position that U.S. export controls and investment restrictions on China are driven by national security concerns and are not intended to sever relations with China, the world's second-largest economy. Secretary Yellen emphasized, "There are many areas of trade and investment that are indisputable and beneficial to both sides."

Secretary Yellen also mentioned the "friend-shoring" policy, which aims to reduce excessive dependence on China by restructuring supply chains around allies and friendly countries. On this day, she called India an "indispensable partner" in friend-shoring and will visit Vietnam later this week as part of this effort.

Additionally, Secretary Yellen said, "If China's growth slows, it will have repercussions for many countries," adding, "We are watching this closely." The slowdown in China's economy was also a topic discussed during high-level talks during her visit to China. She said, "I think they (China) strongly want to convey that at least China's business environment is open and friendly."

Meanwhile, Secretary Yellen reiterated her stance that China should engage in debt relief for developing countries such as Zambia during a speech in Gandhinagar on the same day. She argued that more than half of low-income countries are struggling with debt levels about twice those of 2015, and that debt relief efforts would benefit the global economy. A significant portion of this developing country debt is held by China.

She also confirmed that Western countries, including the U.S., have no intention of reducing support for Ukraine. She emphasized, "The U.S. will stand with Ukraine as long as necessary," and added, "I know our allies and partners will do the same."