Las Vegas Review-Journal

Trump boosts China tariffs by $200B

Latest round could force U.S. companies to scramble to find new suppliers

- By Paul Wiseman and Martin Crutsinger The Associated Press

WASHINGTON — The Trump administra­tion will impose tariffs on $200 billion more in Chinese goods starting next week, escalating a trade war between the world’s two biggest economies and potentiall­y raising prices on a wide range of goods.

The tariffs will start at 10 percent, beginning Monday, then riseto25pe­rcentjan.1.

President Donald Trump made the announceme­nt Monday in a move that is sure to ratchet up hostilitie­s between Washington and Beijing. Trump had already imposed 25 percent tariffs on $50 billion in Chinese goods. China has retaliated, hitting American soybeans, among other goods, in a shot at the president’s supporters in the U.S. farm belt.

Beijing has warned that it would hit an additional $60 billion in American goods if Trump ordered more tariffs. Trump threatened Monday that if China does retaliate, he will add a further $267 billion in Chinese imports to the target list. That would raise the

CHINA

the total to $517 billion — covering nearly everything China sells the United States.

After a public-comment period, the administra­tion said Monday that it had withdrawn some items from its preliminar­y list of $200 billion in Chinese imports to be taxed, including child-safety products like bicycle helmets. And in a victory for Apple Inc. and its American customers, the administra­tion removed smartwatch­es and some other consumer electronic­s products from the list of goods to be targeted by the new tariffs.

At the same time, the administra­tion said it remains open to negotiatio­ns with China.

“China has had many opportunit­ies to fully address our concerns,” Trump said in a statement. “I urge China’s leaders to take swift action to end their country’s unfair trade practices.”

The two countries are fighting over Beijing’s ambitions to supplant American technologi­cal supremacy. The Office of the U.S. Trade Representa­tive has charged that China is using predatory tactics to obtain foreign technology. These tactics include hacking U.S. companies to steal their trade secrets and forcing them to turn over their know-how in exchange for access to the Chinese market.

Trump has also complained about America’s gaping trade deficit —

$336 billion last year — with China, its biggest trading partner.

In the first two rounds of tariffs, the Trump administra­tion took care to try to spare American consumers from the direct impact of the import taxes. The tariffs focused on industrial products, not on things Americans buy at the mall or via Amazon.

By expanding the list to $200 billion of Chinese imports, Trump risks spreading the pain to ordinary households. The administra­tion is targeting a variety of products — sockeye salmon, baseball gloves, bamboo mats — forcing U.S. companies to scramble for suppliers outside China, absorb the import taxes or pass along costs to their customers. ON EDUCATION

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