Courtesy of Zero Hedge
At 8am EDT on Friday, as previewed extensively the the US formally announced the list of Chinese products to be hit with tariffs.
In the first official shot in the US-Chinese trade wars, the US will implement 25% tariff on $50BN in Chinese imports, with the list of imported goods among those listed on China’s 2025 plan
Today's official escalation followed the disclosure in April of a preliminary list targeting about 1,300 products worth $50 billion in Chinese imports, and which was subject to public comment.
Having warned earlier in the week that he would confront China “very strongly” over trade in the coming weeks, Trump this morning said in a statement that the “The United States can no longer tolerate losing our technology and intellectual property through unfair economic practices."
He added that “These tariffs are essential to preventing further unfair transfers of American technology and intellectual property to China, which will protect American jobs,” he said. “In addition, they will serve as an initial step toward bringing balance to the trade relationship between the United States and China.”
Some more details on the list of goods:
- USTR SAYS LIST INCLUDES 1,102 PRODUCT LINES TOTALING $50B
- USTR SAYS CHINA TARIFF LIST CONSISTS OF TWO SETS
- USTR SAYS FIRST SET OF CHINA TARIFFS TO START JULY 6
- USTR SAYS FIRST SET OF CHINA TARIFFS TO COVER $34B IN IMPORTS
- USTR TO FURTHER REVIEW $16B IN IMPORTS IN 2ND WAVE OF TARIFFS
Just as notable, the US vowed to pursue more tariffs if China retaliates, which as we speculated, is the reason why the Trump admin also plans on releasing a list of $100BN in goods subject to tariffs, and which can be implemented as soon as 60 days.
The full statement by the President Regarding Trade with China is below:
My great friendship with President Xi of China and our country's relationship with China are both very important to me. Trade between our nations, however, has been very unfair, for a very long time. This situation is no longer sustainable. China has, for example, long been engaging in several unfair practices related to the acquisition of American intellectual property and technology. These practices, documented in an extensive report published by the United States Trade Representative (USTR) on March 22, 2018. harm our economic and national security and deepen our already massive trade imbalance with China.
In light of China's theft of intellectual property and technology and its other unfair trade practices, the United States will implement a 25 percent tariff on S50 billion of goods from China that contain industrially significant technologies. 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 United States and many other countries. The United States can no longer tolerate losing our technology and intellectual property through unfair economic practices.
These tariffs are essential to preventing further unfair transfers of American technology and intellectual propertv to China. which will protect American jobs. In addition. they will serve as an initial step toward bringing balance to the trade relationship between the United States and China.
The United States will pursue additional tariffs if China engages in retaliatory measures, such as imposing new tariffs on United States goods, services, or agricultural products: raising non-tariff barriers: or taking punitive actions against American exporters or American companies operating in China.
And now we wait China's retaliation.