China may want the US to, but Pres. Trump likes the "tax" (regardless of who is paying).
Larry Kudlow, White House economic advisor, is out saying the White House will not lift existing China tariffs during trade talks.
Kudlow also says:
- Confident that USMCA will be passed this summer.
China has said in the recent past that the tariffs would need to be rolled back to continue negotiations, but Pres. Trump loves the billions of dollars coming in, regardless of who pays it (importers or China as he/Navaro says). Besides, according to Navorro, talks are already underway.
Keeping the tariffs on China goods, also has the potential for China business to be distributed else where. If it goes to places like Vietnam where labor costs are also less than the US, you can be sure there will be talk of the deficit with Vietnam. If businesses come back to the US (or manufacturers here enter the market), they would do so due to the tariffs increasing the cost of imports. If tariffs are abolished, that "new" business, might end up being out of business again.
The calculus has many and varying inputs. Nevertheless,don't expect any reductions in tariffs on China exports to the US in a while....
