Trump formalizes China tariffs, China retaliates on ag |

Trump formalizes China tariffs, China retaliates on ag

President Donald Trump today formalized the 25 percent tariffs on $50 billion in Chinese goods that he had previously proposed, and China retaliated by announcing it would impose tariffs on an equal amount of U.S. goods.

The United States will impose tariffs on $34 billion in Chinese goods on July 6 and China announced it will levy duties on $34 billion of U.S. products, covering 545 categories ranging from soybeans, pork, chicken, seafood to sport-utility vehicles and electric vehicles, The Wall Street Journal reported. The farm goods were chosen to hit U.S. states that supported Trump, according to people with knowledge of Beijing’s plan, WSJ said.

In a news release, the Office of the U.S. Trade Representative said the U.S. government would impose the tariffs as part of the U.S. response to China’s unfair trade practices related to the forced transfer of American technology and intellectual property.

“We must take strong defensive actions to protect America’s leadership in technology and innovation against the unprecedented threat posed by China’s theft of our intellectual property, the forced transfer of American technology, and its cyber attacks on our computer networks,” said Trade Representative Robert Lighthizer.

“China’s government is aggressively working to undermine America’s high-tech industries and our economic leadership through unfair trade practices and industrial policies like ‘Made in China 2025.’

“Technology and innovation are America’s greatest economic assets and President Trump rightfully recognizes that if we want our country to have a prosperous future, we must take a stand now to uphold fair trade and protect American competitiveness.”

The list generally focuses on products from industrial sectors that contribute to or benefit from the “Made in China 2025” industrial policy, which include industries such as aerospace, information and communications technology, robotics, industrial machinery, new materials, and automobiles. The list does not include goods commonly purchased by American consumers such as cellular telephones or televisions.

There are two lists of products.The U.S. government will begin to collect duties on the first list valued at $34 billion on July 6.

The second set of products valued at $16 billion will undergo further review and a final determination will be announced later.

The Chinese government said it would also announce retaliation against the tariffs on the $16 billion in tariffs at a later date.

In a clear signal of a traditional trade war, Trump also said he would add more tariffs if the Chinese impose the tariffs.