White House slaps 25% tariff on $50 billion worth of Chinese goods

Ivanka Trump and her husband Jared Kushner dine with Chinese officials

Ivanka Trump and her husband Jared Kushner dine with Chinese officials

A list of potential tariff targets has already been published by the United States Trade Representative and it largely includes intermediate goods used by companies to make other products as well as some consumer goods like televisions.

By June 15, Washington will release a list of some $50-billion worth of Chinese goods that will be subject to a 25% tariff, the White House said in a statement. "Discussions with China will continue on these topics, and the United States looks forward to resolving long-standing structural issues and expanding our exports by eliminating China's severe import restrictions".

All of these announcements should be taken with a shaker's worth of salt though, since these are just the latest cards being played in a series of interconnected negotiations both internal to the White House and external with the Chinese government.

A White House official, who asked for anonymity to discuss administration policy, said the measures were part of a US national security strategy to prevent American intellectual property from being obtained by foreign competitors. As different actors curry favor with President Donald Trump, their respective policies seem to appear and disappear.

But when Trump subsequently said he would ease penalties against ZTE in order to save Chinese jobs, this drew a sharp backlash from his supporters.

Treasury Secretary Steven Mnuchin said a trade war with China was "on hold" less than 10 days ago.

In addition to the tariffs, the White House also announced forthcoming restrictions on Chinese investment in USA tech companies.

China commerce's ministry reacted swiftly overnight with a short statement, saying it was surprised and saw it as contrary to the consensus both sides had reached recently. "The proposed investment restrictions and enhanced export controls will be announced by June 30, 2018, and they will be implemented shortly thereafter".

The Trump administration previously announced a list of Chinese products affected by the tariff primarily focused on electronics, aerospace and machinery products.

After Trump administration officials traveled to China at the start of the month, a Chinese delegation came to Washington two weeks later.

Officials said they will also continue to pursue litigation against China at the World Trade Organization.

The announcement, which offered little new information, comes as Commerce Secretary Wilbur Ross prepares to travel to Beijing this week for another round of talks aimed at resolving the conflict, which includes a threat of matching sanctions from China on United States goods.

The Trump administration plans to shorten the length of validity for some visas issued to Chinese citizens, the State Department said Tuesday, as President Donald Trump works to counter alleged theft of U.S. intellectual property by Beijing. China and the United States averted a trade war by reaching an agreement on May 20 under which Beijing agreed to "significantly increase" its purchases of American goods and services to reduce United States dollars 375 billion trade deficit with Washington. "Regardless of what measures the USA launches, China has the confidence, capability and experience in safeguarding the interests of the Chinese people and its core national interests".

In addition to affecting Chinese companies that export products into the USA, the tariffs could also affect multinational OEMs that have shifted their manufacturing to China to take advantage of lower labor costs.

Recommended News

  • Man Missing After Flood Waters Sweep Him Away In Maryland

    Man Missing After Flood Waters Sweep Him Away In Maryland

    Hermond is the only person who has been reported missing, and there have been no other reports of fatalities or serious injuries. Local resident Nathan Sowers owns the River House Pizza Co., an outdoor eatery in the old mill town's business district.
    Computer game depicting school shootings challenged

    Computer game depicting school shootings challenged

    Nearly as soon as the game's store listing went up, Steam users took to the game's forums to voice their distaste. A video game is being released next week that allows players to act the part of a school shooter.
    Starbucks closing stores Tuesday for anti-bias training

    Starbucks closing stores Tuesday for anti-bias training

    The men, who had previously asked for the code needed to use the store's bathroom, said they were waiting for a friend. A guide advises staff to consider whether the actions they take would apply to any customer in the same situation.
  • Andrew Lincoln reportedly leaving 'The Walking Dead'

    Collider is reporting a rumor that when Lincoln departs, Reedus will step up and be the show's new leading man. Now it seems Andrew Lincoln , who plays Rick Grimes on AMC's The Walking Dead , may be leaving the series.
    Hawaii's erupting Kilauea volcano belches another plume of ash

    Hawaii's erupting Kilauea volcano belches another plume of ash

    The most recently destroyed homes were in Hawaii's Leilani Estates subdivision, which was evacuated more than three weeks ago. On Sunday afternoon while lava wasn't moving very much in Leilani Estates, two people were out mowing their lawns.
    Floods Strike Maryland City For Second Time in 2 Years

    Floods Strike Maryland City For Second Time in 2 Years

    Kittleman said that a huge gap - between 25 and 30 feet - opened between Ellicott Mills and Main Street following the heavy rain. He said some of the areas repaired after the 2016 devastation withstood Sunday's flood waters.
  • IOS 11.4: What you need to know about Messages in iCloud

    IOS 11.4: What you need to know about Messages in iCloud

    You now can tell Siri which rooms to play music in, noted The Verge , but like AirPlay 1, it's very much dependent on your phone. Conversations are still end-to-end encrypted, Apple points out, and Messages in iCloud isn't enabled by default.
    Trump to Meet Abe to Prepare for Planned North Korea Summit

    Trump to Meet Abe to Prepare for Planned North Korea Summit

    There has been back and forward over whether the historic meeting between Donald Trump and Kim Jong Un will go ahead. At the same time, a "pre-advance" team was travelling to Singapore to meet with North Koreans, the White House said.
    After Dramatic Rescue, France Makes 'Spider-Man' a Citizen

    After Dramatic Rescue, France Makes 'Spider-Man' a Citizen

    Reacting to Gassama's intervention on Antenne Reunion radio she said: "We can only thank him and thank heaven he was so reactive". Gassama told Hidalgo by phone on Sunday that he arrived from Mali a few months ago and wished to stay in France.
  • JAB to buy sandwich chain Pret A Manger from Bridgepoint

    JAB to buy sandwich chain Pret A Manger from Bridgepoint

    Tuesday said it would acquire Pret, as the chain is commonly known, from private equity owner Bridgepoint Advisers Ltd. The deal follows nine years of like-for-like sales growth at Pret, which generates group revenues of £879m.
    Would You Drink Cockroach Milk - And Should You?

    Would You Drink Cockroach Milk - And Should You?

    The freakish fad superfood is made from crystals secreted by mother roaches to feed their young. The company says that entomilk is rich in protein content, as well as iron, zinc and calcium.
    At Least Jayson Tatum Posterized LeBron James In Game 7

    At Least Jayson Tatum Posterized LeBron James In Game 7

    The Cleveland Cavaliers and LeBron James will visit either the Golden State Warriors or the Houston Rockets in Game 1 . The Warriors endured another poor start before using their customary second-half surge to win Game 7.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.