Senior US officials are to discuss trade disputes next week with a top Chinese economic official when he visits Washington, a senior US official said on Friday as US President Donald Trump considers new tariffs on steel imports.
The talks are to be led by US Trade Representative Robert Lighthizer, who is to meet with senior Chinese economic adviser Liu He (劉鶴), the official said.
However, US officials say they do not expect a major breakthrough.
Trump has long sought a more balanced trade relationship with China and has threatened to impose a big “fine” against China to protect US intellectual property.
The US official said Trump has discussed imposing a global tariff on imports of steel from China and other nations.
A source close to the White House said he expressed interest in imposing a tariff on steel imports of at least 24 percent, but a White House spokesman said no final decision has been made.
The prospect of a global tariff sent steel shares rising after hours with US Steel Corp and AK Steel Holding Corp up more than 3 percent.
The US Commerce Department on Feb. 16 recommended that Trump impose stiff curbs on steel imports from China and other nations and offered the president several options, ranging from global and nation-specific tariffs to broad import quotas.
A blanket tariff on steel would cover every steel and aluminum product entering the US market from China, the world’s largest steel producer.
“No final decisions have been made. As with every decision he makes, the security of the American people and the American economy will be the president’s primary concerns while he considers his potential options,” White House spokesman Raj Shah said.
“President Trump is committed to achieving fair and reciprocal trade relationships that protect the American worker and grow our economy,” he added.
Liu, a Harvard-trained economist and trusted confidant of Chinese President Xi Jinping (習近平), has emerged as the front-runner to be the next governor of China’s central bank, according to sources with knowledge of the situation.
Liu is the top adviser to Xi on economic policy and is also expected to become vice premier overseeing the Chinese economy.
China has expressed concerns over excessive protectionism in the US steel sector and urged restraint. It has also said it would oppose any “unfair and unreasonable” trade measures by nations such as the US.
American steel companies have pressed the administration to impose trade measures to curb excess steel capacity and surging imports they say are undermining the US industry.
Exports from China to the US reached 1.18 million tonnes last year. China produces a total of 800 million tonnes of steel each year, equal to about half of global output.
In a meeting with a bipartisan group of US senators and representatives at the White House earlier this month, Trump signaled he would take at least some action to restrict imports of both steel and aluminum.
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