Lighthizer Says No Decision Yet on Need for List 4, Exclusions Will Be Offered If New List Moves Forward
U.S. Trade Representative Robert Lighthizer faced criticism about President Donald Trump's China policy, which both Democrats and Republicans noted is hurting U.S. businesses and, if tariffs come on List 4, will dearly cost U.S. consumers. Lighthizer, who was testifying June 18 at the Senate Finance Committee about the administration's trade policy, said there's been no decision on whether there will be tariffs on another $300 billion in Chinese imports. "The president will make that decision in the next few weeks," he said, and if tariffs are levied, there will be an exclusion process. "We think we have been fair in granting exclusions," he said.
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When asked by Sen. Catherine Cortez-Masto, D-Nev., what she should tell outdoor industry companies paying tariffs on their imports, Lighthizer said they should try "to make their case as well as they can" for exclusions. "We are involved in a very difficult trade struggle, which I think is very important to the U.S. economy," he said. "It's impossible to predict when that will be resolved."
He said some companies are moving manufacturing from China to other countries, "in which case there is no problem. Another option, of course, is to move this manufacturing to the United States in which case there are no tariffs and no threats of tariffs." In fact, on the first two groups of products facing 25 percent tariffs, a substantial number of products are manufacturing inputs, so manufacturing in the U.S. is not a way to completely avoid the Section 301 burden.
Sen. Sherrod Brown, D-Ohio, told Lighthizer he supports any and all efforts to get tough on China, but, he said, "We need to see results, and I'm worried we don’t have a plan B." Lighthizer said he didn't know if tariffs alone will convince Chinese officials to curb overcapacity in steel, but he said, "I know one thing that won’t work, and that’s talking to them. If there’s a better idea than tariffs I'd like to hear it. I haven’t heard it. Just chatting with them in a dialogue, that’s not going to cut it."