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- US trade tactic could continue to prolong business uncertainties - expert
US trade tactic could continue to prolong business uncertainties - expert
Removing U.S. tariffs on Chinese goods in stages might be a good strategy to hold Beijing to its promises made during trade negotiations, but it will make it harder for businesses to operate, a former U.S. trade negotiator said.
There's a distinction between what might be attractive as a trade negotiating strategy and what might be attractive from a business perspective, Stephen Olson, a research fellow at the pro-trade group Hinrich Foundation, told.
While removing the tariffs in stages may be effective for the U.S. to keep its leverage in the trade talks, such a move "makes it very, very difficult to do planning and it only extends the period of uncertainty" for businesses, he said.
"Certainly, President Trump would welcome a trade agreement that he could position as a victory, as a win," he said. But if the best deal that is available leaves the president vulnerable to charges from his political opponents that he has gone soft on China, then Trump could back track from reaching an agreement, Olson explained.
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