Published: Sat, June 16, 2018
People | By Leon Thompson

Trump announces 25% tariff on Chinese imports

Trump announces 25% tariff on Chinese imports

In a statement Friday morning, the president said: "The United States can no longer tolerate losing our technology and intellectual property through unfair economic practices".

Earlier today China's foreign ministry said it would hit back Donald Trump's plans to plaster tariffs on its imports.

The tariffs will target technology industries where China hopes to become a world leader, after an investigation uncovered rampant intellectual property theft by Chinese companies against U.S. firms.

But the trade spats are making other investors nervous because they threaten the good thing going on in the United States.

China had warned the White House earlier Friday that it would respond "in the first instance" to protect its economy if Trump moved forward with any tariffs on $50 billion worth of Chinese goods. The list still includes autos, including those imported by General Motors Co and Volvo, owned by China's Geely Automobile Holdings.

The administration initially said that up to 1,300 products could be hit with the tariffs, which American importers pay and pass on to their customers.

On March 1, the Trump administration announced a global 25 percent tariff on all steel imports and a 10 percent global tariff on all aluminum imports.

So far, the USA has imposed tariffs on steel and aluminium imports.

Analysts warn that the move could kick of a full-blown trade war with China.

The U.S. announcement comes at a complex juncture in U.S.

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Her comments provoked much offense on social media and her colleague, who heads the sports committee took a different line on the matter.

"Implementation of the tariffs, when it occurs, could take us closer to a trade war", said Shane Oliver, head of investment strategy at AMP Capital Investors in Sydney.

The Trump administration said it would finalize the list of goods that would be subject to 25% tariffs by June 15, and that the tariffs would go into effect "shortly thereafter".

A Reuters analysis of U.S. Census Bureau import data in April showed that there were about 7,600 consumer and industrial goods still available for tariffs with a combined value of $101 billion in which China accounts for 40 percent or less of U.S. imports.

A second tranche of 284 goods valued at US$16 billion - which would bring the total to US$50 billion - will undergo an additional process of review and public comment, according to the trade representative's office.

"The threshold to come to a consensus or a compromise seems high", Tai Hui, chief market strategist for Asia-Pacific at J.P. Morgan Asset Management wrote in a note. Trump recently hit U.S. allies including the European Union, Canada, and Mexico with tariffs on steel and aluminum imports.

"Tariffs will harm American and Chinese businesses and consumers, and will put economic growth in both countries at risk", Hatch said.

ZTE last week agreed to pay a US$1 billion fine to the United States government to end a crippling supplier ban imposed after it broke an agreement to discipline executives who conspired to evade U.S. sanctions on Iran and North Korea.

Made in China 2025 refers to Beijing's industrial policy of subsidising domestic companies developing strategic advanced technologies, including robotics and artificial intelligence. The White House did not list the meeting between Trump and the officials on a daily schedule of meetings, and the official said that they do not produce lists of attendees for private meetings.

Friday's action follows an administration report in March that complained China had forced foreign companies to surrender their technology secrets in return for market access and had pilfered other advanced USA technologies through a campaign of cybertheft and investment in Silicon Valey start-ups. We have espoused the benefits of capitalism, of free trade, of open markets to the whole world.

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