President Trump signed a proclamation on Thursday that will apply what he said would be “about $60 billion” in tariffs on Chinese imports in an effort to reduce the massive trade deficit the U.S. has with China.
“It is the largest deficit of any country in the history of our world,” Trump said during an speech at the White House on Thursday.
“The word that I want to use is reciprocal,” Trump said. “If they charge us, we charge them the same thing. That’s the way it’s got to be.”
Robert Lighthizer, the U.S. trade representative, said the administration undertook an “extensive” study of trade with China and concluded that the Chinese government unfairly forces U.S. companies to share intellectual property in order to compete in the Chinese economy. The administration will impose the tariffs under Section 301 the 1974 Trade Act, which gives the president authority to seek an end to unfair trade practices.
“This is the first of many,” Trump said as he signed his proclamation on Thursday.
The new measure will impose a 25 percent tariff “on certain products that are supported by China’s unfair industrial policy,” the White House said.
Trump touted the success of steel and aluminum tariffs he recently slapped on a number of other countries who import their metals to the U.S. Canada and Mexico received exemptions from the duties on the condition that both countries agree to a more equitable version of the North American Free Trade Agreement, and Trump offered exemptions to any other nation willing to make trade or security concessions to the U.S.
“Many countries are calling to negotiate better trade deals,” Trump said. “We are just starting a negotiation with the European Union.”
