Trump Sets 25 Percent Tariff On Chinese Tech Goods In Motion
President Donald Trump has set one of the more aggressive steps on his trade war with China, announcing a 25 percent tariff that will take effect in July on Chinese tech imports. The $50 billion worth of tariffs will affect any Chinese “industrially significant technologies” coming to America.
We first caught wind of the idea when Trump floated the idea around imported steel and aluminum tariffs earlier this year. The current technology tariff seemingly stemmed from that, although he proposed $60 billion at the time.
Trump's goal is to reduce the US' trade deficit with China, which hit an all-time high of $375.2 billion in 2017. Trump also noted:
“We’ve lost, over a fairly short period of time, 60,000 factories in our country—closed, shuttered, gone. Six million jobs, at least, gone. And now they’re starting to come back.
[...] The word that I want to use is ‘reciprocal.’ When they charge 25 percent for a car to go in, and we charge 2 percent for their car to come into the United States, that’s not good. That’s how China rebuilt itself.”
The White House has made a pretty broad list of more than 1,000 products that will be specifically affected by the tariff. Some items specifically called out include touchscreens, batteries, and electric motors while less specific components like transistors for televisions, cameras, and radio receivers are also on the list.
The list, which was updated in April, had removed 515 items and proposed an additional 284 in an effort to "take multiple steps to protect American technology and intellectual property from certain discriminatory and burdensome trade practices by China."
The memo released also mentioned China's "Made in China 2025" plan, and that these steps are in response to that manuever. In a nutshell, that plan would give China a competitive edge in advanced manufacturing that would shift China's economy into a higher seat at the table.
The tariffs are set to begin July 6 and will surely draw feedback from both sides of the ocean.