U.S. Trade Representative Katherine Tai will announce Monday, that China is not following the so-called phase 1 trade agreement, sources familiar with the matter said to CNBC’s Kayla Tausche.
According to the agreement, China was to purchase an additional $200 million in U.S. goods for a period of two years. However, sources claim that the nation has not kept the promise.
This announcement will be the Biden administration’s most aggressive pushback against China. Monday’s remarks will be made by Tai on the review of China’s trade policy in Washington.
It is unclear how the USTR will respond. CNBC was informed by sources that the USTR is considering possible actions against China for non-compliance. This could include additional tariffs.
Tai will speak on Monday to mark the end of the deal that was signed by Trump in 2019. It called on China to increase its purchases of certain U.S. products and services starting Jan. 1, 2020, until Dec. 2021..
China’s August purchases of U.S. goods and services are estimated to be at 62% of trade deal’s targets. This is according to Chad Bown, a senior fellow with the Peterson Institute for International Economics, Washington.