Trump escalates China trade fight
Beijing threatens to retaliate as president orders billions in tariffs
WASHINGTON – President Donald Trump ordered more than $30 billion in new tariffs on an array of Chinesemade goods, from jet engines to dishwasher parts, rattling markets Friday and ratcheting up fears of a trade war.
Citing what he described as unfair trading practices and China’s “theft of intellectual property,” Trump imposed a 25 percent tariff on hundreds of products to take effect July 6 and threatened a harder stance if Beijing retaliates.
“This situation is no longer sustainable,” Trump said Friday. “The United States can no longer tolerate losing our technology and intellectual property through unfair economic practices.”
China responded minutes later, saying the U.S. had “launched a trade war.” The Ministry of Commerce threatened to impose retaliatory tariffs and said that any progress that had been made during several rounds of talks were now nullified.
The U.S. tariffs, which were expected, follow steep duties Trump imposed on steel and aluminum from Canada, Mexico and the European Union.
Trump officials said the products to be hit with tariffs include those that benefit from the “Made in China 2025” policy, an effort by Beijing to ramp up aerospace, robotics and other manufacturing industries. Officials said the list does not include common consumer products, such as cell phones and TVs.
In all, 818 products representing $34 billion in U.S. imports will fall under the new tariffs – less than the roughly 1,300 products the administration had initially considered. U.S. officials said 284 more products are under review. Tariffs on those items would bring the total to about $50 billion.
In April, China raised import duties on a $3 billion list of U.S. products that includes pork and apples.
U.S. Trade Representative Robert Lighthizer described the tariffs Friday as a “defensive” action.
Senate Minority Leader Chuck Schumer, D-N.Y., applauded the decision, saying, “The president’s actions on China are on the money.”