US - China on the brink of trade war
The Trump administration has just released a list of nearly 1,300 Chinese products that could be subject to increased tariffs on imports into the US. The move further raises the risk of a real trade war between the two countries.
The Trump administration has just released a list of nearly 1,300 Chinese products that could be subject to increased tariffs on imports into the US. The move further raises the risk of a real trade war between the two countries.
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| Photo: CNBC |
Following President Trump’s decision on March 22, Washington is preparing to impose tariffs worth about $50-60 billion on imported goods from China, citing the theft of American intellectual property. According to US Trade Representative Robert Lighthizer, Chinese goods will be subject to higher tariffs than currently, up to 25%.
The items on the list of 1,300 Chinese products proposed to increase import tariffs, announced by Mr. Lighthizer on April 3, are mainly in the fields of information technology - telecommunications, aerospace industry, robotics, medical equipment and education.
The US Trade Representative explained that increasing tariffs on products that benefit China’s industrial ambitions would minimize the negative impact on the US economy. Specifically, Washington wants to counter Beijing’s long-standing policy of “forcing” US companies to transfer technology and intellectual property to Chinese companies on the mainland.
According to CNN, the decision to impose new import tariffs on Chinese goods by the US will not take effect immediately. The Trump administration will hold a public hearing for US businesses on May 15. Even then, it is unclear when the decision will take effect.
In a statement issued immediately after the US Trade Representative’s new move on April 3, the Chinese Embassy in the US emphasized that Beijing strongly condemns and opposes the proposed list of tariff increases. The Chinese Embassy added that the country plans to bring the case to the World Trade Organization (WTO) and will apply corresponding countermeasures against US goods.
In retaliation for Washington's increased tariffs on aluminum and steel imports, Beijing on April 1 decided to raise tariffs by up to 25% on 128 US products. The move further escalated trade tensions between China and the US.
Observers are concerned that the tit-for-tat actions between the two sides will push China and the US deeper into a real trade war, with unpredictable losses to the economies and consumers of both countries.
