Trump threatens all-out trade war with China, tariffs on $200 billion worth of goods
- President Donald Trump directed the US Trade Representative's office to draw up a list of $200 billion worth of Chinese goods to subject to an additional 10% tariff.
- Trump said that the new tariff would go into effect if the Chinese government did not lower recently announced tariffs on US goods and failed to address the theft of US intellectual property by Chinese companies.
- The latest round of tariffs would almost definitely put the US into all-out trade war against China.
President Donald Trump threatened to escalate the trade fight with China into an all-out trade war on Monday, promising to impose massive tariffs on Chinese goods unless Beijing reverses course on its own trade actions.
Trump directed the US Trade Representative's office to begin drawing up a list of $200 billion worth of Chinese goods to hit with a 10% tariff, dwarfing the size of previous trade actions against China.
"Therefore, today, I directed the United States Trade Representative to identify $200 billion worth of Chinese goods for additional tariffs at a rate of 10 percent," Trump said. "After the legal process is complete, these tariffs will go into effect if China refuses to change its practices, and also if it insists on going forward with the new tariffs that it has recently announced."
Monday's announcement comes just three days after Trump officially announced that tariffs on $50 billion worth of Chinese goods would be subject to a new 25% tariff starting July 6. The tariffs were the result of an investigation by Commerce Department into the theft of US intellectual property by Chinese companies.
Following Trump's announcement, China rolled out retaliatory tariffs on $50 billion worth of US goods and promised to stand firm against the US's actions.
The statement from Trump on Monday said that China's response showed that Beijing had no plans to address the underlying IP theft and required escalation by the US.
Trump also threatened to hit China with a third wave of tariffs, an additional 10% on another $200 billion worth of Chinese goods, if the country hit back with their own tariffs.
Here's Trump full statement announcing the new tariff investigation:
On Friday, I announced plans for tariffs on $50 billion worth of imports from China. These tariffs are being imposed to encourage China to change the unfair practices identified in the Section 301 action with respect to technology and innovation. They also serve as an initial step toward bringing balance to our trade relationship with China.
However and unfortunately, China has determined that it will raise tariffs on $50 billion worth of United States exports. China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology. Rather than altering those practices, it is now threatening United States companies, workers, and farmers who have done nothing wrong.
This latest action by 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. 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.
Therefore, today, I directed the United States Trade Representative to identify $200 billion worth of Chinese goods for additional tariffs at a rate of 10 percent. After the legal process is complete, these tariffs will go into effect if China refuses to change its practices, and also if it insists on going forward with the new tariffs that it has recently announced. If China increases its tariffs yet again, we will meet that action by pursuing additional tariffs on another $200 billion of goods. The trade relationship between the United States and China must be much more equitable.
I have an excellent relationship with President Xi, and we will continue working together on many issues. But the United States will no longer be taken advantage of on trade by China and other countries in the world.
We will continue using all available tools to create a better and fairer trading system for all Americans.