US dashes hopes for broad tariff cut to fight coronavirus

Treasury chief says Trump likely to consider exemptions for small businesses

WASHINGTON: The Trump administration is not considering broad relief from import tariffs on Chinese goods to ease economic pain from the coronavirus, US Treasury Secretary Steven Mnuchin said on Friday, dashing hopes of industry and some lawmakers.

President Trump, however, would likely consider some specific exemptions to aid small businesses hurt by the virus, Mnuchin said on CNBC and to reporters at the White House.

US Trade Representative Robert Lighthizer was "looking at additional exemptions for companies that are particularly hit and have issues with the virus", Mnuchin said. "To the extent that there are company-specific issues, we will address that with the president and react accordingly."

High tariffs in Pakistan lead to anti-export bias

Anti-tariff forces both outside and inside the government see the virus crisis as their biggest opportunity for rolling back at least some import taxes since a US-China phase-1 trade deal was reached in December. Tariffs of up to 25% remain on some $370 billion worth of Chinese goods imported annually.

US importers were billed for $48.1 billion in duties on Chinese goods from the Trump administration's "Section 301" tariffs over the past 20 months, according to the US Customs and Border Protection.

"This is a tax that is fully within the authorities of the executive branch, so they can very quickly give American businesses and American consumers a tax cut by lifting the tariffs that are in place," US Representative Stephanie Murphy told Reuters on Thursday.

Published in The Express Tribune, March 14^th, 2020.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.