Trump admin. approves $50 billion tariffs on China

Trump admin. approves $50 billion tariffs on China

The Chinese appear to have been taken back by Trumps decision on Friday, especially since the two sides have been in extensive sides to avert a trade war of tit-for-tat tariffs and penalties.

Friday's announcements cap months of sometimes fraught shuttle diplomacy between Washington and Beijing, in which Chinese offers to buy more United States goods failed to assuage Trump's grievances over a soaring trade imbalance and the country's industrial development policies.

"Imposing tariffs places the cost of China's unfair trade practices squarely on the shoulders of American consumers, manufacturers, farmers, and ranchers", said Thomas Donohue, president of the U.S. Chamber of Commerce.

After the USA announcement, China's commerce ministry responded by saying that it would "immediately introduce countermeasures of the same scale and strength", although it did not go into detail.

Officials of the Trump Administration feel China has more to lose in the trade war with the USA for it needs the American market more than it is the other way round and also because of the fact that China has a trade surplus.

Mr Trump has previously said that if China retaliated, he would impose tariffs on a further $US100b in goods.

Trump no longer believes that Beijing's influence over North Korea is a compelling reason to ease up on trade talks now that his administration has opened up a direct line of communication with the nuclear-armed country, the first administration official said.

The government went on: "In this day and age, launching a trade war is not in the interest of the world".

"I don't want China cheating on us", said Bill Gordon who grows corn and soybeans on a 2,000-acre family farm in Worthington, Minn. The aircraft maker garnered about 12.8 per cent of its 2017 revenues from China and is frequently seen as among the more vulnerable United States multinationals to a full-on trade war.

Mr Trump said the tariffs were "essential to preventing further unfair transfers of American technology and intellectual property to China, which will protect American jobs".

New tariffs on imports from China may leave American companies with a choice - pay a higher freight bill now or pay the tariffs starting in three weeks.

A set of retaliatory tariffs released Friday by China includes a plan to tax American lobster exports, potentially jeopardizing one of the biggest markets for the premium seafood. Beijing forces USA and other foreign companies to hand over technology as a price of admission to the vast Chinese market.

"A trade war can be anything from a minor skirmish to a full-blown battle, with lots of collateral damage to American workers, farmers and consumers", said Michael Smart, managing director at Rock Creek Global Advisors in Washington and a former worldwide trade director on the National Security Council.

On Friday, the United States announced additional tariffs of 25 percent on Chinese imports worth approximately US$50 billion.

In all, 818 products representing $34 billion in US imports will fall under the new tariffs - less than the roughly 1,300 products the administration had initially considered.

PORTLAND, MAINE-A set of retaliatory tariffs released by China on Friday includes a plan to tax US lobster exports, potentially jeopardizing one of the biggest markets for the premium seafood.

It added, "There is no victor in a trade war, and the US instigation of a trade war is extremely destructive to global trade, economic globalization, multilateral trade systems and global production supply chains". They view plans for state-led development of companies capable of competing globally in fields including electric cars, renewable energy and biotech as a route to prosperity and to restore China to its rightful role as a world leader.

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