USA to Impose 25% Tariff on Tech Goods From China - White House

Casey Dawson
June 2, 2018

The US President had threatened to impose tariffs of up to $150 billion on Chinese goods to combat what he claimed were unfair trade practices on the part of Beijing.

Trade war fears had receded after the Trump administration said it had reached a deal to put ZTE Corp back in business after banning China's second-biggest telecoms equipment maker from buying us technology parts for seven years.

In retaliation, China threatened to impose a 25 percent tariff on Dollars 50 billion worth of USA exports.

After an announcement on Tuesday that tariffs on US$50 billion in Chinese goods were coming soon, Navarro lamented that Treasury Secretary Steven Mnuchin's suggestion that the tariffs were on hold was erroneous.

"From now on, we expect trading relationships to be fair and to be reciprocal", Donald Trump said in statement.

"No matter what the actions that the United States plans to take, China has the confidence, the capability and the experience to defend the core interests of the people and the nation", the statement said.

But that was before the US said it will unveil new potential investment restrictions in the hi-technology sector by the end of June and start imposing tariffs as early as mid-June.

Commerce Secretary Wilbur Ross is to visit Beijing this week to try and get China to agree to firm numbers for additional United States exports to the country.

China is cutting import duties on washing machines, cosmetics and some other consumer products amid USA pressure to narrow its multibillion-dollar trade surplus. But on Wednesday, Trump reversed and signaled that he still planned to impose $50 million in tariffs on Chinese imports.

Other advisers have pushed for tougher action, demanding that China make substantial reforms to its economy to end the subsidies it provides to developing industries and to allow American companies equal access in the Chinese market.

U.S., North Korea to hold second day of nuclear talks
Secretary of State Mike Pompeo in NY , their third meeting in two months, to finalize a first summit between the two countries. Kim Yong-chol will meet with Pompeo "later this week", she said, adding that the secretary "looks forward to his meetings".

Economists say the changes also can help generate jobs in China by allowing consumers to buy higher-quality goods locally instead of when they travel overseas.

Trump has bemoaned the massive USA trade deficit with China - $337 billion previous year - as evidence that Beijing has been complicit in abusive trading practices.

The United States has also long complained that China forces USA companies to share technology with Chinese firms as part of joint ventures in order to gain access to its market.

Asian equities slid on Wednesday as concerns about the repercussions of Italy's political turmoil and the renewal of trade tensions between the United States and China gripped financial markets.

The meeting held in Washington in May where many matters were discussed on Chinese matters. But two days of talks in Washington ended earlier this month with only vague Chinese promises to buy more USA agriculture and energy products.

According to a press release issued by the White House, the United States will announce investment restrictions and enhanced export controls on China by June 30.

China commerce's ministry reacted harshly, saying it was surprised and saw it as contrary to the consensus both sides reached recently. The State Department said that under the new policy, USA consular officers may limit how long visas are valid, rather than the usual practice of issuing them for the maximum possible length.

Trump has moved this year to increase trade pressure on Beijing.

The White House announced Tuesday that the crackdown on Chinese trade would take effect in June.

Noting that China is engaging in a systematic and multifaceted strategy to steal intellectual property, Gaetz alleged that beyond the economic costs, this theft presented significant concerns for national security.

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