Supposedly it’s payback time. That’s what the Trump Administration says about a new round of tariffs.
Following an intellectual property (IP) review, Trump Announces $50 billion in China Tariffs.
The US plans to impose roughly $50 billion in tariffs on Chinese goods and limit the country’s investment activity in the US as payback for what it alleges is years of intellectual property theft.
The White House said it has prepared a list of more than 1,000 products that could be targeted by tariffs. Businesses will have the opportunity to comment before the final list goes into effect.
US Trade Deficit With China
“Out Of Control”
The Wall Street Journal reports U.S. to Apply Tariffs on About $60 Billion of Chinese Imports.
“It’s out of control,” said Mr. Trump, referring to the trade deficit with China.
The Trump administration complains that the Chinese use intimidation and subterfuge to acquire U.S. technology, put U.S. firms in China at a disadvantage through unfair licensing deals and siphon away U.S. jobs. Mr. Trump sees confrontation as the way to get results, feeling that past administrations haven’t been tough enough, said senior White House officials.
China contends it has improved its protection of intellectual property and that it is moving fast to further liberalize its economy. It also is putting together a package of retaliatory measures against U.S. tariffs.
The $50 billion figure equals about 10% of U.S. imports from China. U.S. officials said the amount is roughly equal to its calculations of annual lost earnings by U.S. companies in China as a result of forced joint ventures and technology transfers.
“Holding China accountable for refusing to follow global trading rules is important and necessary,” said a statement by National Retail Federation President Matthew Shay, “But instead, the tariffs proposed by the administration will punish ordinary Americans for China’s violations.”