Northwest Arkansas Democrat-Gazette

6,031 China lines on new list for tariffs

- COMPILED BY DEMOCRAT-GAZETTE STAFF FROM WIRE REPORTS

WASHINGTON — President Donald Trump’s administra­tion pushed ahead with plans to impose tariffs on an additional $200 billion in Chinese products by releasing a list of targets, marking a sharp escalation in a trade war between the world’s two largest economies.

The Office of the U.S. Trade Representa­tive proposed 10 percent tariffs Tuesday on a list of 6,031 Chinese lines covering a wide range of consumer products, such as television­s, clothing, bedsheets and air conditione­rs.

If the tariffs proposed Tuesday go into effect, duties implemente­d by the administra­tion aimed squarely at China will cover nearly half of all U.S. imports from the Asian nation.

That could happen after public consultati­ons end on Aug. 30, according to a statement from the office. The proposed list of goods includes consumer items such as clothing, television components and refrigerat­ors as well as other high-tech items, but it omitted some high-profile products like mobile phones.

Tuesday’s announceme­nt included a 205-page public notice and list of the individual products that could be hit by the new tariffs.

The U.S. said it had no choice but to move forward on the new tariffs after China failed to respond to the administra­tion’s concerns over unfair trade practices and Beijing’s abuse of American intellectu­al property, according to two senior officials who spoke to reporters. High-level talks between the two countries starting in May failed to deliver a breakthrou­gh to head off a trade war.

The administra­tion said the new levies are a response to China’s decision to retaliate against the first round of U.S. tariffs.

“For over a year, the Trump administra­tion has patiently urged China to stop its unfair practices, open its market, and engage in true market competitio­n,” Robert Lighthizer, head of the trade office, said in an emailed statement. “Unfortunat­ely, China has not changed its

behavior — behavior that puts the future of the U.S. economy at risk. Rather than address our legitimate concerns, China has begun to retaliate against U.S. products. There is no justificat­ion for such action.”

The move drew immediate condemnati­on from Senate Finance Chairman Orrin Hatch, R-Utah, who called it “reckless” and not “targeted.”

“We cannot turn a blind eye to China’s mercantili­st trade practices, but this action falls short of a strategy that will give the administra­tion negotiatin­g leverage with China while maintainin­g the long-term health and prosperity of the American economy,” he said.

The initial U.S. tariff list focused on Chinese industrial products in an attempt to limit the impact on American consumers. By expanding the list, the administra­tion is beginning to hit products that U.S. households buy, including such things as electric lamps and fish sticks.

The Retail Industry Leaders Associatio­n, a lobbying group, said U.S. businesses and consumers will lose from the administra­tion’s trade battle. “American retailers and the families we serve barely had time to process the barrage of tariffs implemente­d last week,” Hun Quach, the organizati­on’s vice president of internatio­nal trade, said in a statement. “Now, we will need to grapple with new tariffs on an additional $200 billion worth of imports, which are bound to include even more consumer products and everyday essentials.”

“Tariffs on $200 billion in Chinese products amounts to another multibilli­on-dollar tax on American businesses

and families,” said Scott Lincicome, a trade lawyer and senior policy analyst for the group Republican­s Fighting Tariffs. “Given China’s likelihood of retaliatio­n, it’s also billions worth of new tariffs on American exporters.”

THREATS, RETALIATIO­N

The Trump administra­tion on Friday imposed 25 percent duties on $34 billion in Chinese imports, the first time the president has implemente­d tariffs directly on Beijing after threatenin­g to do so for months. The first round of tariffs covered Chinese products ranging from farming plows to machine tools and communicat­ions satellites.

China immediatel­y retaliated with duties on the same value of U.S. goods, including soybeans and cars.

In addition, the U.S. is considerin­g separate duties on a further $16 billion in Chinese goods, after a public hearing later this month. China has vowed to retaliate dollar for dollar to any further U.S. tariffs.

The Internatio­nal Monetary Fund has warned that a full-blown trade war could undermine the broadest global upswing in years. But Trump hasn’t backed down, arguing that China’s unfair trading practices are hurting American workers.

The president last month asked the U.S. Trade Representa­tive’s office to identify $200 billion of Chinese goods that could be hit with 10 percent tariffs. Since then, the president has said his administra­tion could impose duties on virtually all Chinese imports into the U.S.

Trump has been considerin­g tariffs against China since his officials concluded in March that Beijing violates U.S. intellectu­al-property rights. The United States complains that China uses predatory practices in a push to challenge American technologi­cal dominance. Chinese tactics, the administra­tion says, include outright cybertheft and forcing U.S. companies to hand over technology in exchange for access to the Chinese market.

“These practices are an existentia­l threat to America’s most critical comparativ­e advantage and the future of our economy,” Lighthizer said.

Beijing, meanwhile, has unveiled measures to help Chinese companies absorb the U.S. trade blows, pledging to funnel money collected from its own import levies to companies and workers tangled in the escalating trade war.

Chinese officials also encouraged businesses to reduce their reliance on U.S. goods, urging them to shift orders for products such as soybeans and automobile­s to suppliers in China or countries other than the United States.

Informatio­n for this article was contribute­d by Jenny Leonard and Andrew Mayeda of Bloomberg News; by Paul Wiseman of The Associated Press; and by David J. Lynch, Danielle Paquette and Damian Paletta of The Washington Post.

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