Under Secretary Shambaugh says talks offered “nuanced understanding” of select tariff increases.
Treasury Undersecretary Jay Shambaugh said that China has not reacted negatively to new U.S. tariffs on certain Chinese products partly due to thorough diplomatic conversations. Under Secretary Shambaugh manages the Treasury’s international affairs, and held many conversations with his Chinese counterparts last month to explain why the U.S. chose to dramatically raise tariffs for Chinese products like EVs, solar cells, and steel. Some of the tariffs will increase by 25 percent on January 1, 2025, while a select few will increase by nearly 100 percent.
“I think they were worried when they heard a review was going on that we might do something massive that would change everything in the economic relationship,” the under secretary said. “And I think once we were able to explain to them what we were doing and why, I would say they had a more nuanced understanding of what we were doing, and so you haven’t seen some sort of huge escalation or retaliation.”
As the Lord Leads, Pray with Us…
- For Under Secretary Shambaugh as he oversees the Treasury’s Office of International Affairs.
- For discernment for Secretary Yellen as she heads the Treasury Department.
Sources: Reuters, Newsweek
