After a seven-month investigation by U.S. Trade Representatives into China’s unfair trade practices, the U.S. signed an executive order imposing retaliatory import tariffs on $60 billion worth of Chinese imports. Covering 1,300 product lines, the final list of targeted products will be published 15 days after the Thursday announcement and is expected to cover aeronautics, modern rail, new-energy vehicles and high-tech products.
Coming on the heels of a March 8th executive order imposing additional tariffs on steel and aluminum imports, the latest, direct action against China shocked the international community as stock markets reflected fears of an impending trade war. Designed to protect American companies from intellectual property theft, the U.S. fears China is evolving past cheap consumer goods manufacturing, and setting sights on technology markets. The United States has cited China’s $375 billion U.S. trade surplus as evidence of unfair trade practices such as network hacking, partnership requirements, and investments restrictions.
But response from the East came swiftly the next day, China posted a list of 128 potential retaliation product targets worth $3 billion on its website Friday morning. Chinese consumers could soon experience a 15% tariff on wine, fresh fruit, dried fruit and nuts, steel pipes, modified ethanol, and ginseng as well as a 25% tariff on U.S. pork and aluminum if both parties continue escalation. Soybeans, smartphones or other electronic products were notoriously missing from the initial targets, assumingly saved for the next round of negotiations.
Tariffs are just the beginning for U.S.-China’s new trade relationship; the United States plans to take the matter all the way to the World Trade Organization and impose supportive short-term actions such as investment restrictions and other market-controlling steps as it seeks redress.
Stay connected with us on Facebook, Twitter, and Linkedin as we continue to follow the story.
