Wilbur Ross says December tariff hike likely without China breakthrough
Commcerce Secretary Wilbur Ross during a cabinet meeting on Oct. 21. Photo: Alex Wong/Getty Images
Commerce Secretary Wilbur Ross said Monday on Fox Business that time is running out for the U.S. and China to agree on a trade deal before Dec. 15, when the U.S. is set to impose an additional 15% tariff on around $156 billion worth of Chinese goods.
Why it matters: Future tariff hikes would likely further squeeze the U.S. and Chinese economies, dragging down already declining business investment in the U.S. and possibly pushing the manufacturing industry into a deeper recession.
- China reported last quarter that its economic growth fell to its slowest pace since the 1st quarter of 1992. A report released Monday shows the U.S. manufacturing sector contracted for the fourth consecutive month.
What he's saying: “If nothing happens between now and then, the president has made quite clear he’ll put the tariffs in — the increased tariffs, Ross said.
- Ross said December is a "really good time" to add more tariffs because he claims it wouldn't "interfere with this year’s Christmas," since many retailers have already stocked up.
- "We have a very strong economy and [the Chinese] have lots of problems," Ross added.
Our thought bubble, via Axios' Dion Rabouin: The negative impacts of Trump's trade war are already being felt by American businesses. As we've reported, big retailers are forcing their small suppliers to absorb the cost of tariffs and small business hiring has taken a major hit, along with hiring in the retail and manufacturing sectors.
The big picture: One of Beijing’s priorities in talks has been removing existing U.S. tariffs on Chinese goods. Increasing tariffs on Chinese goods would further complicate any hope for an agreement.