Pompeo defends US President’s new tariffs on China
US Secretary of State Mike Pompeo suggested that China should act according to the trade agreement established earlier this year as a first step in preventing President Donald Trump from imposing an additional 10-per-cent tariff on US$300 billion worth of Chinese goods.
During trade talks between the two countries earlier this year, China agreed to increase its purchase of US agricultural produce such as soybeans and pork to offset the trade imbalance between the two countries.
However, President Trump claimed via Twitter that China did not follow through on the agreement to increase purchases of US agricultural products in large quantities and said that as a result, the US will impose an additional 10-per-cent tariff on US$300 billion worth of Chinese goods.
In May, the US imposed a 25-per-cent tariff on US$250 billion worth of Chinese goods. The new round of tariffs will be imposed on a separate group of products including shoes, apparel and electronic gadgets.
Pompeo stated that China should first come back to the agreement they had on the table as a first step to lower the tariffs imposed on their exports, referring to their agreement for China to increase purchases of agricultural products.
He was speaking to the press during his visit in Bangkok earlier today on the US economic engagement in the Indo-Pacific region.
He added that further talks between the two countries would be held in Washington in September and that the US would continue its commitment to promoting free trade in the region.
“China has for decades been taking advantage of trade from the US and that has to stop,” he said. “President Trump’s head-on approach to solve this issue has been effective and we are working hard to make sure that China starts trading freely not only with the US but also with its neighbours in Asia.”
Pompeo also commented on the US sanctions on Iran, stating that the US is ready to impose sanctions on any Asian countries or companies that are importing oil from Iran.
“We must absolutely prevent Iran from acquiring the resources necessary to build their nuclear programme and we are ready to increase sanctions on any countries or companies importing Iran’s oil,” he stated.
Amid the increasing protectionism between the US and various countries, Pompeo stated that the US is committed to promoting free trade in the Indo-Pacific region, stressing that US investments from private businesses in the region have no political agenda.
