Biden, EU Could Pause Tariff War, Trade Lawyer Says
U.S. Fashion Industry Association counsel David Spooner told attendees at the USFIA industry virtual conference Nov. 10 that while he thinks it's unlikely that the current administration would add new tariffs on China before leaving office in two months, it's possible that President Donald Trump could increase the tariff rate on list 4A, or put tariffs on list 4B, as a way of “venting his frustration with China.” Spooner, who is at law firm Barnes and Thornburg, said it's also possible that the administration will retaliate against European Union tariffs authorized by the World Trade Organization for past Boeing subsidies.
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After Joe Biden takes office in 2021, Spooner said, there may be a pause in the European trade war. “I think Biden will generally be more inclined to work with the EU on trade issues,” he said in response to a question from International Trade Today. The Trump administration was “often really irked” because of the trade deficit with Germany, he said. He said that the Biden administration and the EU could agree to a several months' pause in the tariffs on planes, wine, spirits and other products, and engage in negotiations during that time, with a hope to reach a settlement to permanently remove the tariffs. “But this is a really hard dispute to resolve,” he said, so there may not be a settlement at the end of that period, and the tariffs could return.