US President Donald Trump on Friday slapped a stiff 25 per cent tariff on $50 billion worth of Chinese goods, as he accused Beijing of intellectual property theft and unfair trade practices, triggering a trade war between the world’s two largest economies.
In a statement, Trump said 25 per cent tariffs will be applied to Chinese goods that “contain industrially significant technologies.”
Trade between the two countries “has been very unfair, for a very long time,” Trump said, adding that “this situation is no longer sustainable.” Trump warned China of more tariffs if Beijing retaliated on today’s announcement.
“In light of China’s theft of intellectual property and technology and its other unfair trade practices, the United States will implement a 25 per cent tariff on $50 billion of goods from China that contain industrially significant technologies,” he said.
This includes goods related to China’s ‘Made in China 2025’ strategic plan to dominate the emerging high-technology industries that will drive future economic growth for China, but hurt economic growth for the US and many other countries, he said.
“America can no longer tolerate losing its technology and intellectual property through unfair economic practices,” he said.
“These tariffs are essential to preventing further unfair transfers of American technology and intellectual property to China, which will protect American jobs,” Trump said.
In addition, they will serve as an initial step toward bringing balance to the trade relationship between the US and China, he asserted.
Currently, the US has a trade deficit of more than $370 billion per annum with China.
Reacting to Trump’s latest announcement, China said it has imposed “equal” tariffs on US products.
“We will immediately launch tax measures of equal scale and equal strength,” China’s Commerce Ministry said in a statement.
“The United States has kept changing its mind and now launched a trade war,” it said. “China does not want a trade war,” it said, adding it would “fight back vigorously” in defence of its national interests, globalisation and the world trade system.
The Ministry statement gave no further details of the American products that would be hit. China has previously promised to respond with retaliatory tariffs on US products such as cars, planes and soybeans.
It also called on other countries to “take collective action” against the US move, calling it “outdated and backwards behaviour”.