USA targets Chinese tech with a 25 percent tariff

Dan Erickson regional representative for the Minnesota Corn Growers Association examined his corn crop at his Alden Minn. farm

USA targets Chinese tech with a 25 percent tariff

What you need to know about the president's latest trade move. "This situation is no longer sustainable", it said. A date for those tariffs has not yet been made publicly available.

American auto giant Ford has sold 338,386 cars thus far in China in 2018, about one-third the number in the USA, and had welcomed a Chinese plan to lower tariffs on auto imports. "For China's part, its leaders will be determined not to be seen to back down to foreign pressure". The tariffs will hit products including aircraft tires and commercial dishwashers.

A lot, but not a lot. The Chinese haven't issued a list but have stated it would be an identical 25% on $50 billion of American exports. So far, Mexico, Canada, and the European Union have done little to retaliate against the United States for levying 25% tariffs on steel and 10% tariffs on aluminum.

United States restrictions will target China's technical industries, including aerospace, robotics, and auto engineering.

The U.S. imported $506 billion of goods from China a year ago and exported about $130 billion, leaving a 2017 deficit of $376 billion, according to government figures. Other trade groups opposing the US tariffs included the Business Roundtable and the US Chamber of Commerce.

Beginning July 6, China will slap an extra 25 percent tariff on 545 products from the United States including soybeans, electric cars, orange juice, whiskey, salmon and cigars, according to the Ministry of Finance.

While the tariffs amount to just a small portion of the economy, their impact on consumer confidence is considerable, especially as prices on goods like washing machines rise. LED screens, printer and scanner parts and sensors: all components of electronics that are among the items on the administration's list.

The tariffs will take effect within days.

Tariffs on about $34 billion in Chinese imports will go into effect July 6. Initially, 545 USA products valued at $34 billion will be targeted, mimicking the tariff rollout by the Trump administration. It also added, "China is a powerful guardian and has enough ammunition to defend existing trade rules and fairness".

The statement was issued after the U.S. president announced tariffs of 25 percent on $50 billion of Chinese imports, making good on a pledge to punish the alleged theft of United States intellectual property.

In April, the USA banned ZTE from buying American technology for seven years, effectively putting the company out of business.

The administration wants the Chinese government to change its ways on all these fronts.

The world's No. 2 economy will impose tariffs with the "same scale and intensity" on imports from the USA, and all of China's earlier trade commitments are now off the table, according to government statements. So any agreement could also target the trade balance more directly. After some skirmishes related to washing-machine and solar-panel tariffs, Trump struck the first direct blow at China in March with the announcement of tariffs on Chinese goods.

What else should I be watching out for?

Most semiconductor devices imported from China use chips produced in the United States, with low-level assembly and testing work done in China, prompting the Semiconductor Industry Association to call the new tariff list "counterproductive".

Ten days later, the White House abruptly said it would proceed with the tariffs.

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