USA imposing 25pc tariffs on $50bn worth of Chinese goods

USA imposing 25pc tariffs on $50bn worth of Chinese goods

USA imposing 25pc tariffs on $50bn worth of Chinese goods

But the Trump administration called off that truce Tuesday with the surprise announcement that it was moving ahead with tariffs on about $50 billion worth of Chinese goods as well as measures to restrict Chinese investment in the United States.

The countries said China would "significantly increase" purchases of USA goods and services to reduce their trade imbalance, a top Trump administration demand, and pledged to continue talks.

The Trump administration will also move to restrict USA investments and the export of certain US technology to China in what the White House portrayed as an effort to protect national security.

The final list of covered imports will be announced by June 15, and tariffs will be imposed on those imports shortly thereafter, it said.

That deal was separate from the USA investigation into China's alleged theft of intellectual property.

The announcement on Tuesday restated comments by administration officials that both the tariffs and the restrictions remained in place even after the United States and China sketched out a deal this month to reduce China's $375 billion trade surplus with America.

China has made their points that if nothing is agreed upon between two and the U.S. still imposes any tariffs then China will show no cooperation and retaliate from their tariffs on United States exports such as that of soya beans.

In a further indication of the Trump administration striking a tougher tone before the negotiations later this week, the White House issued a separate statement running through its major grievances over China's trade practices from forced technology transfers to automobile import tariffs.

He acknowledged the USA had limited options for keeping China from developing its domestic industries, but said "what we can do is we can stop them from putting our high-tech industries out of business with the tariffs".

Treasury Secretary Steven Mnuchin went on Fox News to say the trade war was "on hold".

Congressman Matt Gaetz commended Trump for taking action against China's ruthless and unfair trade practices, as well as its state-sponsored theft of American innovators' intellectual property (IP). The group cited research from Iowa State University economist Dermot Hayes, who estimates that US pork producers have lost $2.2 billion on an annualized basis as a result of events leading up to and following China's 25 percent punitive tariff on pork.

In response, the Chinese Commerce Ministry said the country is prepared for whatever the U.S. may impose. However, the US has yet to publish a list of target products for the $100 billion, and the White House statement makes no reference to the second potential tranche of duties.

The announced measures also come amid bipartisan criticism of the president's softening of penalties for ZTE, a Chinese telecom company that had traded with Iran and North Korea in defiance of USA sanctions.

The president has been seeking Chinese agreement to reduce the $375 billion US goods trade deficit and to drop trade practices that he said hurt American companies.

The Commerce Department informed Congress on Friday of a plan to ease penalties on ZTE (ZTCOF), the Chinese phone and telecom equipment maker that was crippled by an export ban issued in April as punishment for what the United States said were violations of its sanctions against North Korea and Iran.

Commerce Secretary Wilbur Ross will head to China to talk with the government on Saturday.

"We must vigorously defend our market and interests with every tool available, including tariffs, investment restrictions, and actions at the World Trade Organization".

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