US President Donald Trump has signed an order that paves the way
for imposing tariffs on as much as $60bn worth of Chinese goods
imports.
The move on Thursday is seen as a direct shot in a brewing trade
war between the world’s two biggest economies.
Saying it would be the “first of many” trade actions, Trump said
the measure was aimed at punishing Beijing over the alleged theft
of US technology and Chinese pressure on American companies to hand
it over.
“We have a tremendous intellectual property theft situation
going on,” Trump told reporters.
The White House said that Trump would direct the Office of the
US Trade Representative (USTR) to publish a detailed product list
of proposed tariffs within 15 days. USTR has already identified
potential targets: 1,300 product lines worth about $48bn.
The president is also asking Treasury Secretary Steven Mnuchin
to come up with a list of restrictions on Chinese investment.
Referring to the US’ $375bn trade deficit with China, which he
blamed for the loss of American jobs, Trump said: “It is the
largest deficit of any country in the history of our world. It is
out of control.”
Chinese response
Beijing has already warned that it will take “all necessary
measures” to defend itself, raising the prospect of a trade war
between the two economic powerhouses.
“China on Thursday reiterated that they would defend their
interest at all cost,” said Al Jazeera’s Scott Heidler, reporting
from Shanghai, noting that Chinese officials believe that a
requirement of even trade between the two countries is
“unrealistic”.
“In the past, they have said that if there are any tariffs
coming from the US, they will retaliate,” he added.
“It’s been reported that the retaliation is probably going to be
slow and steady, and not overarching, but we really won’t know what
that kind of retaliation is until Friday, at the very
earliest.”
Stocks plummet
The new import duties will target industrial sectors where
“China has sought to acquire an advantage through the unfair
acquisition or forced technology transfer from US companies,”
senior White House economic advisor Everett Eissenstat told
reporters.
The products subject to the new tariffs have not yet been
identified.
But the move sent stocks diving on Wall Street, where the Dow
Jones Industrial Average was down about two percent in the face of
the announcement and ratcheted up Trump’s confrontational stance
with trading partners.
Trump will direct US Trade Representative Robert Lighthizer to
identify and publish a proposed list of products that could be
subject to tariffs.
He will also direct Lighthizer to take action against China at
the World Trade Organization, charging Beijing with preventing US
companies from licensing their technology in China.
The measure also directs the US Treasury to develop new
proposals to increase safeguards on investments that could
compromise US national security.
Steel and aluminium tariffs
The move against China comes just as the US prepares to impose
tariffs of 25 percent on imported steel and 10 percent on aluminium
– sanctions that are meant to hit China for flooding the world with
cheap steel and aluminium.
But Lighthizer said on Thursday that Europe, Australia and South
Korea are among a significant list of trading partners to be
initially exempt from new US tariffs on foreign steel and
aluminium.
Testifying to the Senate Finance Committee, US Trade
Representative Robert Lighthizer said that Trump has decided to
“pause the imposition of the tariffs” while negotiating with a
“list” of additional countries.
“We have Europe, we have Australia, we have Argentina, we have
Brazil, who am I forgetting? And obviously, Korea, where we’re
negotiating, of course,” Lighthizer said.
While signing off on the tariffs against China, Trump insisted
the country was still a “friend”.
“I have tremendous respect for President Xi (Jinping),” Trump
said, trying to limit the fallout. “We have a great
relationship.”
“I view them as a friend,” he added.
Al Jazeera correspondent Kimberly Halkett said there was a
“mixed review” in the US Congress “because of the president’s
approach, which seems to be all over the map in terms of executing
this”.
“Essentially, what this comes down to is that these tariffs are
targeting just one country: China,” said Halkett.
“Looking at it, you have to say that with friends like these,
who needs enemies?”
US President Donald Trump has signed an order that paves the way
for imposing tariffs on as much as $60bn worth of Chinese goods
imports.
The move on Thursday is seen as a direct shot in a brewing trade
war between the world’s two biggest economies.
Saying it would be the “first of many” trade actions, Trump said
the measure was aimed at punishing Beijing over the alleged theft
of US technology and Chinese pressure on American companies to hand
it over.
“We have a tremendous intellectual property theft situation
going on,” Trump told reporters.
The White House said that Trump would direct the Office of the
US Trade Representative (USTR) to publish a detailed product list
of proposed tariffs within 15 days. USTR has already identified
potential targets: 1,300 product lines worth about $48bn.
The president is also asking Treasury Secretary Steven Mnuchin
to come up with a list of restrictions on Chinese investment.
Referring to the US’ $375bn trade deficit with China, which he
blamed for the loss of American jobs, Trump said: “It is the
largest deficit of any country in the history of our world. It is
out of control.”
Chinese response
Beijing has already warned that it will take “all necessary
measures” to defend itself, raising the prospect of a trade war
between the two economic powerhouses.
“China on Thursday reiterated that they would defend their
interest at all cost,” said Al Jazeera’s Scott Heidler, reporting
from Shanghai, noting that Chinese officials believe that a
requirement of even trade between the two countries is
“unrealistic”.
“In the past, they have said that if there are any tariffs
coming from the US, they will retaliate,” he added.
“It’s been reported that the retaliation is probably going to be
slow and steady, and not overarching, but we really won’t know what
that kind of retaliation is until Friday, at the very
earliest.”
Stocks plummet
The new import duties will target industrial sectors where
“China has sought to acquire an advantage through the unfair
acquisition or forced technology transfer from US companies,”
senior White House economic advisor Everett Eissenstat told
reporters.
The products subject to the new tariffs have not yet been
identified.
But the move sent stocks diving on Wall Street, where the Dow
Jones Industrial Average was down about two percent in the face of
the announcement and ratcheted up Trump’s confrontational stance
with trading partners.
Trump will direct US Trade Representative Robert Lighthizer to
identify and publish a proposed list of products that could be
subject to tariffs.
He will also direct Lighthizer to take action against China at
the World Trade Organization, charging Beijing with preventing US
companies from licensing their technology in China.
The measure also directs the US Treasury to develop new
proposals to increase safeguards on investments that could
compromise US national security.
Steel and aluminium tariffs
The move against China comes just as the US prepares to impose
tariffs of 25 percent on imported steel and 10 percent on aluminium
– sanctions that are meant to hit China for flooding the world with
cheap steel and aluminium.
But Lighthizer said on Thursday that Europe, Australia and South
Korea are among a significant list of trading partners to be
initially exempt from new US tariffs on foreign steel and
aluminium.
Testifying to the Senate Finance Committee, US Trade
Representative Robert Lighthizer said that Trump has decided to
“pause the imposition of the tariffs” while negotiating with a
“list” of additional countries.
“We have Europe, we have Australia, we have Argentina, we have
Brazil, who am I forgetting? And obviously, Korea, where we’re
negotiating, of course,” Lighthizer said.
While signing off on the tariffs against China, Trump insisted
the country was still a “friend”.
“I have tremendous respect for President Xi (Jinping),” Trump
said, trying to limit the fallout. “We have a great
relationship.”
“I view them as a friend,” he added.
Al Jazeera correspondent Kimberly Halkett said there was a
“mixed review” in the US Congress “because of the president’s
approach, which seems to be all over the map in terms of executing
this”.
“Essentially, what this comes down to is that these tariffs are
targeting just one country: China,” said Halkett.
“Looking at it, you have to say that with friends like these,
who needs enemies?”
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