25 percent tariff on $50 billion worth of Chinese goods was announced to be imposed by the United States. The tariffed products contain "industrially significant technology" said the White House.
The goods related to the "Made in China 2025" program would be covered in the tariff, U.S. said. the Trump administration would release a complete list of the goods by June 15.
U.S. China are at logger heads with respect to trade as the U.S. has been complaining of the huge U.S. trade deficit with China which was at $337 billion last year. the U.S. claims that this is because of China’s abusive trading practices.
New investment restrictions and export controls are also being planned by the U.S., said the White House.
The new tariff announcement came at a time when the two countries are trying to negotiate a solution for the broader trade dispute. It is expected that U.S. Commerce Secretary Wilbur Ross would travel to Beijing for more talks later in the week.
The cold realities of global geopolitics is colliding with the hard-line views on trade of US President Donald Trump – which he has been touting long before he entered politics.
Earlie in the month, the Trump administration had set aside its plans to impose tariffs on Chinese good worth $150 billion for the time being and Trump had tweeted last week that a "different structure" was necessary to create a solution in the trade talks between the two largest economies of the world. However, those announcements did not prevent the Trump administration in announcing the most recent tariff plan on Chinese goods worth $50 billion.
There was a brief pause in the trade war between the two countries when the U.S. had announced that China had agreed to "significantly increase" purchasing of U.S. goods and services and engage in "meaningful increases" in U.S. exports of agriculture and energy products.
That was relief for the global markets.
However, there was refusal by Beijing to agree to any specific dollar amounts despite an attempt by the Trump administration of reducing the trade deficit with China by at least $200 billion. There are also doubts that the issue of cybertheft of trade secrets being engaged with by China – as alleged by the U.S., would be agreed to by Beijing. U.S. alleges that Chines forces technology transfer of U.S. companies to domestic Chinese companies – through setting up of joint ventures with them, as part of the conditions of foreign companies doing business in the Chinese market
The trade talks with China are also being viewed in light of the efforts of Trump to hold a June summit with North Korean leader Kim Jong Un. Those efforts aimed at north Korea giving up its nuclear program completely required the cooperation from China – the biggest ally of the rouge regimen of North Korea
"I'm also thinking about what they're doing to help us with peace with North Korea. That's a very important element," Trump said earlier in the week. "So we'll see how it all works out. But in the end, it will work out. Can't tell you exactly how or why, but it always does."
(Source:www.firstpost.com)
The goods related to the "Made in China 2025" program would be covered in the tariff, U.S. said. the Trump administration would release a complete list of the goods by June 15.
U.S. China are at logger heads with respect to trade as the U.S. has been complaining of the huge U.S. trade deficit with China which was at $337 billion last year. the U.S. claims that this is because of China’s abusive trading practices.
New investment restrictions and export controls are also being planned by the U.S., said the White House.
The new tariff announcement came at a time when the two countries are trying to negotiate a solution for the broader trade dispute. It is expected that U.S. Commerce Secretary Wilbur Ross would travel to Beijing for more talks later in the week.
The cold realities of global geopolitics is colliding with the hard-line views on trade of US President Donald Trump – which he has been touting long before he entered politics.
Earlie in the month, the Trump administration had set aside its plans to impose tariffs on Chinese good worth $150 billion for the time being and Trump had tweeted last week that a "different structure" was necessary to create a solution in the trade talks between the two largest economies of the world. However, those announcements did not prevent the Trump administration in announcing the most recent tariff plan on Chinese goods worth $50 billion.
There was a brief pause in the trade war between the two countries when the U.S. had announced that China had agreed to "significantly increase" purchasing of U.S. goods and services and engage in "meaningful increases" in U.S. exports of agriculture and energy products.
That was relief for the global markets.
However, there was refusal by Beijing to agree to any specific dollar amounts despite an attempt by the Trump administration of reducing the trade deficit with China by at least $200 billion. There are also doubts that the issue of cybertheft of trade secrets being engaged with by China – as alleged by the U.S., would be agreed to by Beijing. U.S. alleges that Chines forces technology transfer of U.S. companies to domestic Chinese companies – through setting up of joint ventures with them, as part of the conditions of foreign companies doing business in the Chinese market
The trade talks with China are also being viewed in light of the efforts of Trump to hold a June summit with North Korean leader Kim Jong Un. Those efforts aimed at north Korea giving up its nuclear program completely required the cooperation from China – the biggest ally of the rouge regimen of North Korea
"I'm also thinking about what they're doing to help us with peace with North Korea. That's a very important element," Trump said earlier in the week. "So we'll see how it all works out. But in the end, it will work out. Can't tell you exactly how or why, but it always does."
(Source:www.firstpost.com)