Things China Was Going to Buy More of to Get Tariffs Instead

Marsha Scott
June 18, 2018

President Donald Trump announced Friday that Washington has approved to impose tariffs worth $50 billion on China that was initially announced in April, a move that escalates trade tensions between the world's two largest economies. The two sides had said in a joint statement that China would "significantly increase" purchases of U.S. agricultural and energy products to reduce the trade imbalance, a top Trump demand.

The Friday White House release announcing the new US tariffs on China specified a 25 percent tariff on $50 billion of Chinese goods containing "industrially significant technologies".

Trump laid out a list of more than 800 strategically important imports from China that would be subject to a 25 percent tariff starting on July 6, including cars, the latest hardline stance on trade by a us president who has already been wrangling with allies.

Beijing also said "all economic and trade agreements reached by previous negotiations will be nullified at the same time".

Just days after the Republican firebrand announced trade restrictions on some of the US's closest allies, including European Union states and Canada, it was confirmed America would impose tariffs of 25 percent on $50billion worth of Chinese goods.

In a statement, Trump said 25 per cent tariffs will be applied to Chinese goods that "contain industrially significant technologies". The USTR's final list includes 1,102 product lines including robotics, aerospace, industrial machinery and cars. Meanwhile, US Trade Representative Robert Lighthizer said an announcement on US investment restrictions on China will follow in the next two weeks. "He adds: "'There is no trade war.

Trade analysts say it would be wiser for the United States to enlist its allies to challenge China's drive to grab technology, rather than go it alone with unilateral tariffs. This includes stepped-up USA "freedom of navigation" maneuvers in the South China Sea, sending United States naval vessels through waters claimed by China, and sales of arms to governments with longstanding conflicts with Beijing. Trump said the tariffs were "essential to preventing further unfair transfers of American technology and intellectual property to China, which will protect American jobs".

The US announced plans for tariffs this spring, after an investigation into China's intellectual property practices.

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"We want to trade", Davis, who also sits on the governing committee of the American Soybean Association, said.

Earlier, trade expert Stephen Jacobi told NBR that while New Zealand has few exports in the areas targetted by Mr Trump for tariffs (our steel and aluminium exports to the USA past year totalled $60m), there could be a substantial indirect cost.

The Des Moines Register is warning Iowa residents that newly announced tariffs from the Trump administration could cost farmers in the state as much as $624 million, blasting out the headline on the newspaper's front page Saturday.

The United States is targeting 800 Chinese exports, worth about $34 billion, starting July 6, and another 280 or so after a public comment period.

China has quickly released some details on the retaliatory tariffs it plans to impose on USA goods.

Meanwhile, German Chancellor Angela Merkel implied a new front in the trade row with the United States yesterday, hinting at competition probes of U.S. internet giants.

These include major American exports to China like soybeans, which brought in $14 billion in sales a year ago, and are grown in states that supported Trump during the 2016 presidential election.

To this end, as the WSWS warned, the goal of the recent summit between Trump and Kim Jong-un was not to reduce the risk of war in the region, but to force Pyongyang to choose between falling in behind Washington or face complete destruction.

Other reports by MaliBehiribAe

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