Trump threatens to slap tariffs on an additional $200 billion in Chinese goods, raising trade tensions

By Don Lee

Tribune Washington Bureau

WASHINGTON, D.C. — President Donald Trump, moving to amp up pressure on China to make trade concessions, threatened late Monday to impose tariffs on an additional $200 billion in Chinese imports and to double that amount if Beijing retaliates with countermeasures.

Trump’s announcement marks the latest escalation of a brewing trade conflict with China. It comes after the White House on Friday detailed plans to slap 25 percent tariffs on $50 billion in goods imported from China, most of that to take effect July 6.

Although there was no immediate response from China, Beijing responded quickly Friday to the administration’s announcement of the initial round of tariffs by saying it would match them dollar-for-dollar by applying similar duties on American farm products, cars and other merchandise, also starting July 6.

So far, Trump’s trade battle with China has been mostly threats, and businesses and other parties have been hoping that the two sides will return to the negotiating table. But three bargaining sessions have not yielded a deal to quell tensions. With no word on future talks and both sides not wanting to appear weak, worries are rising that a hardening of positions could lead to a full-blown trade war between the world’s two largest economies, with damaging ripple effects.

Trump, in his statement Monday, said that Beijing’s threat to retaliate, rather than change trade practices to which the United States has objected, showed that “China clearly indicates its determination to keep the United States at a permanent and unfair disadvantage, which is reflected in our massive $376 billion trade imbalance in goods. This is unacceptable.”

The president said that he had directed his trade advisers to identify an additional $200 billion worth of Chinese goods to be assessed tariffs of 10 percent. These would be implemented if China “refuses to change its practices,” Trump said, warning that if Beijing responds by upping duties on additional U.S. imports, he would pursue tariffs on another $200 billion in Chinese products.

“The trade relationship between the United States and China must be much more equitable,” Trump said.

Though Beijing had not responded immediately, China’s official news agency posted a commentary Monday accusing Washington of reneging on an understanding between the two sides that the U.S. would hold off on tariffs after China pledged to buy more American goods.

“China does not want to fight a trade war,” the commentary said. “However, in the face of the short-sighted behavior from the United States, China has to give a strong comeback, firmly defend the interests of the country and the people, and resolutely safeguard economic globalization and the multilateral trading system.”

Trump had previously threatened to increase tariffs to as much as $150 billion in Chinese goods. By tripling the amount to potentially $450 billion, he would hit about 90 percent of all Chinese imports to the U.S.

China last year exported almost $506 billion of goods to the United States, and imported about $130 billion from America, according to the U.S. Census Bureau.

Trump’s initial tariffs on $50 billion in Chinese goods were in response to U.S. allegations of China’s theft of intellectual property and its policies forcing American companies to hand over technology in return for access to China’s vast market — a longstanding complaint through multiple administrations.

Trump said Monday that “China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology.”

The first tranche of tariffs are set to take effect July 6 on 818 types of Chinese goods valued at about $34 billion. The U.S. Trade Representative office is compiling a list of an additional $16 billion worth of products that would be assessed 25 percent duties at a later date.

“Further action must be taken to encourage China to change its unfair practices, open its market to United States goods, and accept a more balanced trade relationship with the United States,” Trump said.

The products slated for U.S. tariffs include a variety of tech-related products and parts, and are meant to slow China’s advancement in cutting-edge technologies and industries. The U.S. goods that China has targeted for duties include many farm goods such as soybeans, hitting farm states that are home to many Trump supporters.