Trump administration has slapped 25% tariffs on $50bn worth of Chinese goods, accusing Beijing of intellectual copyright theft.
In a statement on Friday, President Donald Trump said the measures will affect Chinese goods “that contain industrially significant technologies.” The action comes “in light of China’s theft of intellectual property and technology and its other unfair trade practices,” he added.
Trump noted that the White House could impose additional tariffs if China retaliates with duties of its own on American crops or other products. China is expected to level tariffs on American goods in response to the U.S. action.
In a statement, the United States Trade Representative said the U.S. will impose a first set of tariffs on 818 items worth about $34 billion on July 6. Separate measures affecting 284 products worth about $16 billion could take effect following a review and public comment process.
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The action Friday marks Trump’s latest move to crack down on what he deems unfair trade practices by major trading partners. He is already embroiled in an escalating trade conflict with Canada, Mexico and the European Union. Those entities cried foul and retaliated when Trump imposed steel and aluminum tariffs on them.
Taken together, the trade conflicts — and the threat of even more barriers — raise the specter of damage to a healthy American economy that the president frequently trumpets.
China’s discontent with the tariffs could also affect another key Trump effort: the push to get North Korea to abandon its nuclear and missile programs. Getting Pyongyang to agree to firm denuclearization will rely in large part on the application of international economic sanctions.
China, North Korea’s only major ally, is critical to the effort to keep economic pressure on North Korea. Following a summit between Trump and North Korean dictator Kim Jong Un this week that led to a loose commitment to denuclearization, China suggested it could relieve sanctions on Pyongyang.
