The Trump administration on Friday formally hit China with a 25 percent tariff on $50 billion worth of Chinese goods, and added 284 items to the list of goods that will be affected.
[Update: China retaliates after Trump announces new tariffs]
“My great friendship with President Xi [Jinping] of China and our country’s relationship with China are both very important to me. Trade between our nations, however, has been very unfair, for a very long time. This situation is no longer sustainable,” President Trump said Friday.
“China has, for example, long been engaging in several unfair practices related to the acquisition of American intellectual property and technology,” he said. “These practices … harm our economic and national security and deepen our already massive trade imbalance with China.”
[Also read: Trump defends tariffs on EU, Canada, Mexico: ‘They’re our allies but they take advantage of us’]
The tariffs mainly hit industrial sectors such as aerospace, information and communications technology, robotics, industrial machinery, new materials, and automobiles. The list does not include goods commonly purchased by American consumers such as cellular telephones or televisions, the administration stressed.
The administration announced its initial list in April. Friday’s announcement expands it “based on extensive interagency analysis and a thorough examination of comments and testimony from interested parties.”
The Trump administration has said tariffs must be imposed to counteract China’s unfair trade practices, such as its failure to respect U.S. intellectual property rights, and its move to force companies to manufacture in China as a condition of selling goods there.
“We must take strong defensive actions to protect America’s leadership in technology and innovation against the unprecedented threat posed by China’s theft of our intellectual property, the forced transfer of American technology, and its cyber attacks on our computer networks,” said U.S. Trade Representative Robert Lighthizer. “Technology and innovation are America’s greatest economic assets and President Trump rightfully recognizes that if we want our country to have a prosperous future, we must take a stand now to uphold fair trade and protect American competitiveness.”
Companies that import items covered by the additional duties will be allowed appeal to the Trade Representative’s Office to request the exclusion of particular products from the additional duties.
China has previously vowed to hit the the U.S. with $50 billion in retaliatory tariffs on items including soybeans, aircraft and vehicles.
“Our position is the same: If the US takes unilateral and protectionist measures that harm Chinese interests, we will respond immediately by taking the necessary decisions to safeguard our legitimate rights and interests,” Chinese foreign ministry spokesman Geng Shuang told the BBC.
