Is the US/China trade war about to get worse?!?

Despite significant trade restrictions imposed against China under the Trump Administration (restrictions that have been in place for nearly 4 years), China has showed very little interest in altering its economic behavior. To date, the Biden Administration has done little to alter the prior Administration's restrictions; however, recent comments by USTR Katherine Tai could be interpreted as signaling an escalation in trade restrictions aimed at China.

In 2021, in testimony before the Ways & Means Committee, Tai remarked that "if China cannot or will not adapt to international rules and norms, we must be bold and creative in taking steps to level the playing field and enhance our own capabilities and partnerships." Today, Tai testified to the Committee that the Trump Administration's trade restrictions against China have failed to incentivize change, and that the United States needs "new tools" to combat China's trade barriers and unfair practices.

Tai's statements today in no way indicated any intention to dial back the Trump Administration's trade restrictions, and rather indicated that we may expect to see an increase in AD/CVD cases and Forced Labor findings aimed at leveling the playing field and countering unacceptable practices by China.

#china #trade #tariffs #USTR