USTR opens public comment on proposed US-China trade mechanism

The Office of the U.S. Trade Representative (USTR) on June 2 launched a public comment process on the proposed “U.S.-China Board of Trade,” an initiative agreed by President Donald Trump and Chinese President Xi Jinping during their summit in Beijing last month.

The mechanism is expected to identify categories of non-strategic goods that could see reduced tariffs on both sides, with Washington and Beijing previously describing the initiative as potentially covering about $30 billion in goods per country that are considered low-risk from a national security perspective, Reuters reports. 

In its announcement, the USTR said it is seeking input on "specific types of non-sensitive products" that could be eligible for tariff modifications, with comments due by July 10.

A Federal Register notice accompanying the announcement asked stakeholders to identify goods that could be treated as lower risk, including the following question:

"What types of Chinese products, or Chinese products in particular sectors, should be considered non-sensitive in that they give rise to few, if ‌any, issues ⁠related to economic and national security and supply chain resilience risks?"

The notice also asked whether certain Chinese imports currently subject to higher tariff rates should instead qualify for lower duties, including pre-Trump-era “most-favored nation” rates. It further requested data on trade volumes between 2022 and 2024, as well as analysis of which sectors and consumers could be affected by any changes.

Similar information is being sought regarding U.S. exports to China, including agricultural goods currently facing additional tariffs. The agency also asked for views on how frequently the proposed Board of Trade should meet and how it should adjust its scope over time.

U.S. Trade Representative Jamieson Greer said in a statement that the administration would work with stakeholders "to identify non-sensitive goods trade that ⁠can deliver results for American farmers, ranchers, fishermen, small businesses, manufacturers, and workers."

He added that USTR also welcomed feedback "while continuing to use tariffs to defend American economic and national security and promote balanced and reciprocal trade."

By Sabina Mammadli