Robert Lighthizer says U.S. will not raise tariffs further

The trade representative is known as a China hawk

U.S. Trade Representative Robert Lighthizer told lawmakers yesterday that the U.S. has formally abandoned its plan to raise tariffs on $200 billion in Chinese imports. Axios reported that there are still significant hurdles in negotiations, but Lighthizer is hopeful a deal can be reached.

Snapback tariffs: One of the enforcement mechanisms in the proposed deal would require both countries to meet frequently to discuss potential violations, according to a report in the NYTimes. If China fails to live up to its pledges, tariffs would potentially be reimposed.

Bottom line: Past negotiations have failed as China has never followed through on their commitments. The Chinese have mastered the art of stalling with the U.S. government. It’s crunch time.