President Donald Trump said that the 25 percent tariff on $50 billion of Chinese goods was to respond to the actions of China threatening the US economy, despite his “great friendship” with the Chairman of the People’s Republic of China, Xi Jinping.
Trump announced the imminent imposition of a 25% a response to the “unfair trade methods used by China” and unfair acquisition of American intellectual property and technology.
The US can no longer tolerate the loss of technology and intellectual property due to dishonest trading practices. New duties are needed to prevent further dishonest transfer of US technology and intellectual property to China, which will help protect jobs in the US. In addition, they will be the first step in balancing the trade balance between the US and China, Trump said in a statement.
The US President stressed that the decision to impose the duties was accepted by him despite his “great friendship” with the President Xi of China, since it was simply impossible to tolerate further the state of affairs.
According to Trump, the duties to be introduced will include products manufactured under the strategic plan “Made in China 2025”, the implementation of which is intended to strengthen China’s position in high technology.
Trump also promised to retaliate with additional duties if Beijing decides to respond to their first batch by restricting access of American products to their markets, introducing duties on agricultural products and other goods from the US, or taking any “punitive measures” against US exporters and workers in China companies from the USA.
Earlier The Wall Street Journal reported that the US Trade Representative Office (USTR) may release a list of Chinese goods that will affect new duties on Friday, June 15. This list, according to sources of the publication, will be published in the US Federal Register next week.
China and the United States had agreed earlier this month to put threats tariff war on ice after Chinese Vice Premier Liu He, the top economic advisor to President Xi, led a delegation to Washington. The countries said China would “significantly increase” purchases of US goods and services to reduce their trade imbalance, a top Trump administration demand, and pledged to continue talks.