Santa Fe New Mexican

White House imposes tough trade measures on China

- By Ana Swanson

WASHINGTON — The Trump administra­tion injected a fresh layer of uncertaint­y into its trade dispute with China on Tuesday, saying that it would impose tariffs and other punitive measures on Beijing after all, intensifyi­ng pressure on both countries as trade talks continue and as a summit between the United States and North Korea looms.

Barely a week after Treasury Secretary Steven Mnuchin said that the trade war with China was “on hold” and that tariffs would be suspended as talks continue, the White House issued a statement saying that the United States would move ahead with its plan to impose 25 percent tariffs on $50 billion worth of imported Chinese goods within the next month.

The renewed threat came before a second round of highprofil­e trade talks that begin this weekend, when Commerce Secretary Wilbur Ross is scheduled to visit Beijing to try to resolve a dispute that has threatened to tip the world’s two largest economies into a trade war.

President Donald Trump, who said last week that he was not happy with the way the first round of trade talks with China went, has increasing­ly seized on the threat of tariffs as a cudgel to force concession­s from other countries.

For many trading partners, Trump’s approach has produced confusion and uncertaint­y. Last week, the administra­tion announced a sweeping new investigat­ion that could result in tariffs on imported automobile­s, a move many trade advisers said was designed to increase pressure on Mexico and Canada in negotiatio­ns over the North American Free Trade Agreement.

On Friday, temporary exemptions to steel and aluminum tariffs that the White House granted to the European Union, Canada and Mexico are set to expire, raising the question of whether the countries will fold to Trump’s trade requests or fight back with retaliatio­n of their own.

Hours after the planned tariffs on China were announced, the Chinese Ministry of Commerce accused the White House of going back on its word, and hinted that Beijing expected such a reversal.

“We feel surprised by the tactical statement issued by the White House, and yet it was also unsurprisi­ng,” an unnamed spokespers­on for the Chinese Ministry of Commerce said in the statement released by Xinhua, the official news agency. “This is clearly contrary to the consensus that China and the U.S. reached not long ago in Washington. No matter what measures the U.S. side unveils, China has the confidence, the capacity and the experience to defend the interests of the Chinese people and core national interests. China urges the United States to move toward each other in the spirit of the joint announceme­nt.”

In April, the administra­tion detailed a list of Chinese goods that would be subject to tariffs, including flat-screen TVs and medical devices.

It then held a series of hearings on the tariffs, giving the public a chance to influence the targeted products.

On Tuesday, the White House said it would detail the final list of goods that will subject to the tariffs by June 15 and the duties would be imposed shortly after that.

The White House also said the administra­tion would move forward with restrictio­ns on Chinese investment and with stronger export controls meant to limit the access that Chinese people and companies have to U.S. technology — a measure the administra­tion said was for national security purposes.

Those restrictio­ns will be announced by June 30 and adopted soon after that, the administra­tion said, adding that the United States would also continue to pursue a trade case it has filed against China at the World Trade Organizati­on involving intellectu­al property rights.

Trade talks between the two countries will continue, the statement said, and the United States has asked Beijing to remove “all of its many trade barriers” that prevent U.S. companies from doing business in China, and has also said that “tariffs and taxes between the two countries be reciprocal in nature and value.”

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