Former US Ambassador Speaks on US Tariffs Placed on China


Last Thursday, Max Baucus, a former United States ambassador to China predicted that he expects the US to continue the imposing of tariffs on Chinese goods indefinitely.

Baucus described the situation as being the new normal and stated that he does not expect any increase, nor does he expect any rollback. Baucus was a Montana based Democratic senator who was made ambassador by former US President Barack Obama.

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In an interview, Baucus stated that the best-case scenario that he sees in one where Huawei possibly gets some relief and the USA sees more agricultural products purchased by China.

These comments were made after Wednesday’s Wall Street Journal report that Treasury Secretary, Steven Mnuchin encouraged US suppliers of Huawei to obtain licenses if they want to resume selling to the Chinese telecom giant. The journal report mentioned people who are aware of the situation.

Baucus placed great emphasis on Huawei in the larger trade disagreement. Huawei has been placed on an Entity List. This means that the telecom giant has been barred from purchasing any components or parts from the USA unless the US government has approved same.

Baucus stated that the likeliness of a deal is heavily dependent on the extent to which Huawei can buy high tech products from US companies. He stated that he believes China is expected to investigate that closely.

It is obvious, however, that both countries desire a deal. Baucus stated that both countries want a deal as having any kind of beneficial agreement benefits the economies of both countries. Trump especially wants an agreement so stocks can begin to climb ahead of the elections in 2020. Based on many of Trumps statements, he believes stock market strength to be a huge indication of the performance of his administration.

It was said that Chinese President Xi Jinping is looking to cater to nationalism as much as is possible so he can save face and retain his presidency. Baucus stated that he expects America to realize in the future that it cannot push China around as much as it thought was possible.

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Former US Ambassador Speaks on US Tariffs Placed on China

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