Besant's Interview with Fox Business
115 Percentage Point Tariff Reduction Measures Expire on August 12
U.S. Treasury Secretary Scott Besant announced on July 22 (local time) that he will hold the third round of high-level trade talks with China in Stockholm, Sweden, on July 28-29 (local time), where the two sides will discuss the extension of ultra-high tariff reduction measures.
In an interview with Fox Business on the same day, Secretary Besant stated regarding the previous U.S.-China tariff reduction measures, "That agreement expires on August 12," adding, "We plan to discuss the possibility of an extension with the Chinese side during the meetings in Stockholm on Monday and Tuesday (July 28-29)."
At the first round of negotiations held in Geneva, Switzerland, in May, the United States and China agreed to lower tariffs imposed on each other's imports by 115 percentage points each for 90 days. As a result, the United States is currently applying a 30% tariff rate, while China is applying a 10% rate. The key issue at the upcoming Stockholm talks is expected to be whether to extend these temporary tariff reduction measures.
At the second round of negotiations held in London, United Kingdom, last month, the two sides discussed the easing of export control measures. Following these talks, the United States allowed some semiconductor exports to China, while China expanded its exports of rare earths and permanent magnets to the United States.
In the interview, Secretary Besant stated, "The trade situation with China is very favorable," and explained, "We also plan to discuss various other issues where both countries can cooperate." He also indicated that China's oversupply issue could be on the agenda, saying, "We hope that China will reduce its current manufacturing overcapacity and focus on building a consumer-driven economy."
Additionally, Secretary Besant said that there is a possibility that major countries could conclude trade agreements one after another before the mutual tariff suspension measures expire on August 1. He also mentioned the possibility of a swift agreement with Japan, which had previously shown disagreements in trade negotiations. The South Korean government is also scheduled to hold final negotiations with the United States on July 25, ahead of the tariff suspension deadline.
Secretary Besant commented, "August 1 is quite a strict deadline," adding, "Tariff levels could revert to the reciprocal levels announced on April 2, but that does not mean other countries cannot negotiate at higher tariff levels."
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