U.S. Companies Urge Biden to Restart China Talks, End Duties

(Bloomberg) -- More than 30 U.S. trade groups called on the Biden administration to resume negotiations with China and remove tariffs, which they say are harming the American economy.

In a Thursday letter to Treasury Secretary Janet Yellen and Trade Representative Katherine Tai, the groups urged the U.S. government to restart talks with China to ensure Beijing meets its commitments under the 2020 phase one trade deal and increase purchases of American goods in the rest of 2021.

The groups include influential organizations like the U.S. Chamber of Commerce, the American Farm Bureau Federation and the Semiconductor Industry Association.

“Due to the tariffs, U.S. industries face increased costs to manufacture products and provide services domestically, making their exports of these products and services less competitive abroad,” according to a copy of the letter obtained by Bloomberg News. “The administration can take immediate steps to relieve increasing inflationary pressures and rising prices for all Americans” by reducing the import tariffs, they said.

The U.S. has maintained tariffs on Chinese imports to keep pressure on Beijing to fulfill its obligations under the trade pact. So far, China remains well behind in meeting those goals.

“In the first half of this year, the U.S. economy grew at the fastest rate in nearly 40 years and more jobs have been created in our first six months than under any other Administration in history,” Adam Hodge, a spokesman for Tai, said in an emailed statement.

“As we make historic infrastructure investments and Build Back Better, we are conducting a robust, strategic review of our economic relationship with China to create effective policy that delivers results for American workers, farmers and businesses and puts them in a stronger position to compete with China and the rest of the world.”

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With assistance from Bloomberg