China Warns Agriculture Purchases Won't Come if Section 301 Tariffs Levied
Chinese pledges to buy more U.S. agricultural products and natural gas (see 1805200002) are still on the table, but China said that if Section 301 tariffs are levied, these purchases will not happen. On June 4, the White House issued a summary of the talks between the Chinese and a delegation led by Commerce Secretary Wilbur Ross that happened in Beijing the previous two days. "The meetings focused on reducing the United States’ trade deficit by facilitating the supply of agricultural and energy products to meet China’s growing consumption needs, which will help support growth and employment in the United States," the statement said.
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From China, the government agreed that progress is being made on agriculture and energy, but details have not been hashed out. And, as reported by news agency Xinhua, the government said, "all economic and trade outcomes of the talks will not take effect if the U.S. side imposes any trade sanctions, including raising tariffs."
This was the second round of talks in Beijing that came out of the Section 301 investigation on Chinese market distortions. After a lot of political blowback for putting tariffs on hold in exchange for a reduction in the trade deficit, the administration announced the final tariff target list will come by June 15 (see 1805290010).