Trump looks at tariffs on Chinese products

President acts despite warnings that move would lead to higher prices

WASHINGTON – President Trump ordered trade officials Thursday to draw up a list of tariffs on Chinese products, despite warnings from American business groups that the move would lead to higher prices for consumers.

Trump said the yet-to-be-specified tariffs are designed to address unfair Chinese trade practices — “China’s economic aggression,” a White House statement said. The Chinese vowed retaliatory taxes on American imports.

“We’re doing things for this country that should’ve been done for many, many years,” Trump said.

The administration announced the filing of formal complaints with the World Trade Organization, though Trump said the WTO has been “a disaster” for U.S. trade and often acted unfairly to Americans.

Under a memorandum signed at the White House, Trump ordered the U.S. trade representative to develop a list of specific tariffs within 15 days; they would be subject to a period of public comment before they took effect.

Trump announced the results of a trade representative’s investigation on Chinese practices, including claims of cybertheft of American trade secrets.

The United States aims for tariffs on $50 billion to $60 billion of Chinese imports, seeking to match the amount it says U.S. companies lost because of Chinese trade practices.

U.S. businesses are likely to comment against tariffs; they have asked Trump not to take such a step.

Some business leaders said they agree Chinese trade practices need to be reined in, but tariffs would invite Chinese countermeasures on American products, leading to higher prices on consumer goods.

“The only way we’ll truly make lasting progress is through a strategic approach that uses both carrots and sticks to accelerate changes to Chinese policies,” said Jay Timmons, president and CEO of the National Association of Manufacturers. That includes “efforts to forge a fair, binding and enforceable trade agreement with China that requires them to end these practices once and for all.”

Last week, a coalition of retail groups sent a letter to Trump warning that tariffs against China would invite retaliation affecting their sales.

Noting that the United States already levies import taxes on items such as clothes and shoes, the group said new tariffs “would worsen this inequity and punish American working families with higher prices on household basics.”

The Chinese vowed to hit U.S. goods with tariffs of their own if Trump followed through on his plan. “China will certainly take all necessary measures to resolutely defend its legitimate rights and interests,” said a statement from the Ministry of Commerce hours before Trump’s announcement.

Last month, Trump announced tariffs on steel and aluminum imports. The administration is considering exemptions for some allies that export steel, but China is not likely to be granted such status.

Trump’s China tariffs plan drew support from some lawmakers, including Democrats. Senate Minority Leader Charles Schumer, D-N.Y, said he agreed with findings that China obtained trade advantages by basically stealing U.S. intellectual property and forcing businesses to share technology as a condition of doing business in the country.

“Let’s make sure that China starts playing by the rules,” Schumer said.

Trump is right to take a “hard line” against China’s practices, said Rep. Kevin Brady, R-Texas, chairman of the House Ways and Means Committee. But “tariffs are taxes,” Brady said, and the administration should look at “how to punish China without harming our families, businesses and farmers.”

“The only way we’ll truly make lasting progress is through a strategic approach that uses both carrots and sticks to accelerate changes to Chinese policies.” Jay Timmons National Association of Manufacturers