The Biden administration is announcing changes in trade policy with China aimed at forcing the country to follow through on "unfilled commitments" in the Phase One Trade Agreement.
The U.S. plans to use "all available tools" to enforce the Phase One Trade agreement, according to a senior administration officials, though the officials declined to specifically what enforcement mechanisms the U.S. would be using.
The move comes as top U.S. Trade Representative Katherine Tai is set to announce Monday that China has not been complying with the deal struck by former President Donald Trump's administration. China agreed to purchase an additional $200 billion in U.S. goods during a two-year period, a pledge officials say the country has so far failed to follow through on.
Part of the new plan will involve the U.S. restarting a targeted tariff exclusion process, according to senior administration officials. The U.S. will also be engaging with allies in hopes of promoting fair, competitive, international trading.
The move will be one of the first times the administration has forcefully pushed back against China, which is so far estimated to only be running at 62% of the trade agreement's targets for purchases of U.S. goods and services.
Tai is set to resume direct negotiations with her Chinese counterpart, where she will emphasize the need for China to follow through on the rest of their commitments.