Trump Administration Escalates Trade War With China, Brings In More Tariffs
The Unites States government has proposed an additional USD 50 billion worth of tariffs on about 1,300 Chinese exports.
Washington: Fears of a trade between the world's two biggest economies have escalated even more with the Unites States government proposing additional USD 50 billion worth of tariffs on about 1,300 Chinese exports.
The Trump administration is recommending 25% tariffs on USD 50 billion in Chinese imports to protest Beijing's alleged theft of American technology. The Office of the US Trade Representative has issued a list targeting 1,300 Chinese products, including industrial robots and telecommunications equipment. But the proposed tariffs wouldn't take effect before a public comment period ends May 11.
According to the CNN, many of the tariffs would target the Chinese aerospace, tech and machinery industries. Others would target medical equipment, medicine and educational material, such as bookbinding equipment.
The move comes just weeks after a round of aggressive actions by the Trump Administration such as imposing steel tariffs and a round of tariffs on USD 60 billion worth of Chinese exports. The U.S. government says it is forced to take these steps to combat what it calls unfair trade practices by China and other countries. American businesses worry that the administration's moves will draw painful retaliatory sanctions and also impact them in a world where trade is globally interconnected.
The Trump Administration had announced the first round of tariffs after a months-long investigation by the United States Trade Representative (USTR) department concluded that China forces U.S. tech companies that want to operate in the country to enter joint ventures with Chinese businesses and share their technology. Chinese firms often steal patents and software from the American firms, the investigation found.
Economists have warned the move could prompt China to retaliate and lead to higher prices for American consumers. The release of the list comes just after China hit USD 3 billion worth of U.S. products with tariffs in response to a round of tariffs the U.S. has imposed.
The list came hours after China's Foreign Ministry insisted it would respond with equal measure to any U.S. tariffs. China said it has its own list of American exports that it will target if the United States goes through with its plan. "We have been saying that China wouldn't start a trade war," a Foreign Ministry spokesperson said in Beijing. "But we are not afraid of it, and we will resolutely fight to the end if someone insists on a war."
The Chinese government has moved its economy away from its dependence on exports in recent years, which is likely to blunt the effect of the U.S. tariffs, according to analysts for S&P Global Ratings. They said the U.S. is the destination for only about 15% of China's good exports.
(The above story first appeared on LatestLY on Apr 04, 2018 07:16 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).