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During her first interview since the US Senate’s confirmation as Trade Representative, Katherine Tai turned down the hopes of removing the American tariffs on imports from China. However, the diplomat showed readiness to negotiate.

“The U.S. isn’t ready to lift tariffs on Chinese imports in the near future, but might be open to trade negotiations with Beijing,” said Ms. Tai per Wall Street Journal (WSJ).

The news report also quoted the newly appointed US diplomat as saying, “The tariffs can exact a toll on U.S. businesses and consumers, though proponents have said they also help shield companies from subsidized foreign competition.”

Additional comments”¦

“I have heard people say, ‘Please just take these tariffs off,'” Ms. Tai said. But “yanking off tariffs,” she warned, could harm the economy unless the change is “communicated in a way so that the actors in the economy can make adjustments.”

“Whether they are companies, traders, manufacturers or their workers,” she added, “the ability to plan” for changes that affect their future is essential.

FX implications

The news joined the coronavirus (COVID-19) woes to weigh on the market sentiment at the weeks’ start. That said, S&P 500 Futures drop 0.30% intraday by the press time of early Monday morning in Asia.

Read:  AUD/USD: Recent challenges to sentiment probe bulls around 0.7650