Washington/Beijing, Jul 11: Ramping up the US-China trade war, the Trump administration today announced 10 per cent tariffs on an additional USD 200 billion worth of Chinese imports, prompting Beijing to warn of “counter measures” to safeguard its interests.
The Trump administration’s move comes after the US imposed 25 per cent tariffs on Chinese goods worth USD 34 billion last Friday. Beijing immediately responded with its own tariffs on US goods worth USD 34 billion. The retaliatory tariffs that China enacted Friday targeted US cars and major agricultural goods, such as soybeans and meat.
US Trade Representative Robert Lighthizer released a list of thousands of additional goods that could face 10 per cent tariffs after a public comment period. It includes fruit and vegetables, handbags, refrigerators, rain jackets and baseball gloves.
Lighthizer said there was “no justification” for China’s retaliation.
“As in the past, the United States is willing to engage in efforts that could lead to a resolution of our concerns about China’s unfair trade practices and to China opening its market to US goods and services,” he said.
“In the meantime, we will remain vigilant in defending the ability of our workers and businesses to compete on a fair and reciprocal basis,” he said.
The White House says the tariffs are a response to unfair trade practices by China.
The US wants China to stop practices that allegedly encourage transfer of intellectual property to Chinese companies, such as requirements that foreign firms share ownership with local partners to access the Chinese market.
Reacting to Washington’s fresh move, China said it is “shocked” and warned that it would endanger global trade.
China’s Commerce Ministry described Washington’s latest threat as “totally unacceptable,” saying it would harm the world.
“The behaviour of the US is hurting China, hurting the world and hurting itself,” a spokesperson for China’s commerce ministry said in a statement.
The spokesperson also said the government would have to take the “necessary counter-measures”.
US Trade Representative Lighthizer said due to China’s retaliation and failure to change its practices, President Donald Trump has ordered USTR to begin the process of imposing tariffs of 10 per cent on an additional USD 200 billion of Chinese imports.
“This is an appropriate response under the authority of Section 301 to obtain the elimination of China’s harmful industrial policies. The USTR will proceed with a transparent and comprehensive public notice and comment process prior to the imposition of final tariffs, as we have for previous tariffs,” Lighthizer said.
He said that for many years China has pursued “abusive” trading practices over intellectual property and innovation. Chinese policies and practices force US innovators to hand over their technology and know-how as the price of doing business in the country, Lighthizer said.
“China also uses non-economic means to obtain US technology, such as using state-owned funds and companies to buy up American businesses and imposing burdensome intellectual property licensing requirements in China,” he said.
The USTR’s report also found that the Chinese government sponsors the outright theft of US technology for commercial benefit.
“These practices are an existential threat to America’s most critical comparative advantage and the future of our economy: our intellectual property and technology,” he asserted.
According to Lighthizer, 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.
“We have been very clear and detailed regarding the specific changes China should undertake. Unfortunately, China has not changed its behaviour that puts the future of the US economy at risk. Rather than address our legitimate concerns, China has begun to retaliate against US products. There is no justification for such action,” he said.
