Donald Trump Approves Plan to Impose Tough China TariffsTop Stories

June 15, 2018 12:02
Donald Trump Approves Plan to Impose Tough China Tariffs

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United States president Donald Trump has sanctioned a plan to enforce arduous tariffs on tens of billions of dollars of Chinese goods.

The move could put his trade policies on a collision course with his push to rid the Korean Peninsula of nuclear weapons. His calls for billions in duties could perplex his endeavors to maintain China's activity in his talk terms with North Korea.

Trump has long assured to carry through his political campaign promise to clinch down on what he considers unfair Chinese trading practices.

According to an industry and an administration official familiar with the plans, Trump met several cabinet members and trade advisers on Thursday and was anticipated to impose duties on at least $35-$45 billion of Chinese imports.

According to the industry official, the number of goods could reach $55 billion. The official further spoke on condition of anonymity in order to discuss the matter ahead of a formal announcement.

As expected if the president presses forward, it could set the stage for a series of trade actions against China and lead retaliation from Beijing. His propose tariffs could consequently lead to trade war involving the world's two biggest economies.

Trump, in his press conference in Singapore on Tuesday, said the U.S. has a "tremendous deficit in trade with China and we have to do something about it. We can't continue to let that happen." The U.S. trade deficit with China was $336 billion in 2017.

"If you end up with a tariff battle, you will end up with price inflation, and you could end up with consumer debt. Those are all historic ingredients for an economic slowdown," Gary Cohn, Trump's former top economic adviser, said at an event sponsored by The Washington Post.

The ongoing negotiations over the trade disputes were held by U.S. and China. The U.S. has criticized China for assertive tactics it uses to evolve progressive technologies, under its "Made in China 2025" program suchlike robots and electric cars under its.

The tariffs on China by the U.S. designed specifically to push China forcing American companies to hand over technology in exchange for access to the Chinese market.

The administration is as well working on proposed Chinese investment restrictions by June 30.

Up to now, Trump has yet to signal any interest in backing away.

By Sowmya Sangam

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