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- US will keep tariffs on China even if coronavirus starts hurting growth - Trump advisor Navarro
US will keep tariffs on China even if coronavirus starts hurting growth - Trump advisor Navarro
CNBC reports that White House trade advisor Peter Navarro pushed back against the idea that the U.S. would remove tariffs on Chinese imports if the deadly coronavirus begins to weigh on China's economy.
"That's a spin that's coming right out of Wall Street, and it really, I think, it does a disservice to this whole crisis to bring that into the discussion," Navarro said on CNBC.
Navarro was responding to a question whether a tariff rollback was on the table if China was abiding by the terms of the "phase one" trade deal but started to see its economy hurt by the coronavirus.
Companies in China have shut down stores, factories and closed offices as the country works to contain the spread of the virus. Some have warned of severe disruption to supply chains in China, with at least American CEO predicting the impact could last up to six months.
The U.S. and China have been engaging in a long-running trade war in which each side has placed billions of dollars' worth of tariffs on each other's goods. The "phase one" deal was considered the first step in larger negotiations to reach a trade détente.
On the subject of removing tariffs due to the coronavirus, Navarro said, "Let's remember why the tariffs are in place."
"The tariffs are in place because China engages in massive unfair subsidies. They use their state-owned enterprises to put American companies and workers out of business," he said. "And the tariffs also ensure that we come back for phase two."
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