USA imposing 25% tariff of Chinese goods, apply investment restrictions in June

USA imposing 25% tariff of Chinese goods, apply investment restrictions in June

Trump ordered the tariffs in March in response to what he called "tremendous intellectual property theft" by China, identified in a Section 301 trade investigation launched last summer.

The unexpected announcement was met with some surprise, in light of Trump's unbridled enthusiasm for the meeting, and most - including White House staff tasked with briefing the press - thought it meant a summit would at least be postponed. Officials in the Trump administration have sought to distance ZTE from the trade talks, but the president previously linked the two issues.

After the Office of the U.S. Trade Representative released a list of 1,300 product categories for potential tariffs of $50 billion on Chinese goods, China retaliated with a threat of an equal $50 billion in tariffs on U.S. exports to China.

"The thinking became that if the USA doesn't have any leverage and there is no pressure on our Chinese friends, then we will not have serious negotiations".

But Chinese media had noted that the deal with the USA could see some Australian imports sidelined, including beef and wine, which had gained preferential access under Australia's Free Trade Agreement with China.

"Even if there were, our analysis suggests bilateral tariffs wouldn't move the dial on China's growth".

The White House announced Tuesday that the crackdown on Chinese trade would take effect in June.

In March, America's commander in chief threatened to increase the tax on Chinese imports, which would affect certain aerospace parts to specific computer components, potentially demanding up to 25 per cent extra in charges on incoming equipment.

Harvey Weinstein surrenders to police in sex assault probe
Actress Rose McGowan , who accused Harvey Weinstein of rape, applauded the arrest of the Hollywood media mogul in NY on Friday. Actress Rose McGowan , who has accused Weinstein of raping her at the 1997 Sundance Film Festival, said she was "shocked".

The two countries earlier this month agreed to look at measures to reduce China's trade surplus with the United States in a move that appeared to reduce the risk of a trade war between the world's two largest economies.

"We want to reiterate that we don't want a trade war, but we aren't afraid of fighting one", Chinese Foreign Ministry spokeswoman Hua Chunying said at a briefing on Wednesday.

"In global relations, an about-face or constant change of positions is bound to damage or squander a country's credibility", Hua said. The full list of products affected will be announced by June 15 and the tariffs will be implemented "shortly thereafter", according to the administration.

The White House said Tuesday the proposed tariffs are in response to China's practices with respect to technology transfer, intellectual property, and innovation.

The American Chamber of Commerce in China (AmCham) said in a report published Wednesday that its member companies are anxious investigations into China's intellectual property practices and industrial policies could cause tensions to flare again. The State Department said that under the new policy, US consular officers may limit how long visas are valid, rather than the usual practice of issuing them for the maximum possible length.

Given ZTE's dependency on U.S. technology, his actions brought the Chinese company to the brink of bankruptcy, forcing Xi Jinping to plead for Trump's mercy.

On Friday, Trump said he had reached a deal that would allow the embattled Chinese telecom firm ZTE to remain in business, raising criticism from Congress that he was backing off from his tougher promises on trade.

Related Articles