Trump is going ahead with China tariffs
US President Donald Trump has approved a plan to impose punishing tariffs on tens of billions of dollars of Chinese goods as early as Friday, a move that could put his trade policies on a collision course with his push to rid the Korean Peninsula of nuclear weapons.
On Thursday, Trump met several Cabinet members and trade advisers and was expected to impose tariffs on at least $35bn to $40bn of Chinese imports, according to an industry official and an administration official familiar with the plans.
The amount of goods could reach $55bn, said the industry official. The officials spoke on condition of anonymity in order to discuss the matter in the face of a formal announcement.
Trump has long vowed to fulfill his campaign pledge to clamp down on what he considers unfair Chinese trading practices.
If the president presses forward as expected, it could set the stage for a series of trade actions against China and lead to retaliation from Beijing.
Trump has already slapped tariffs on steel and aluminum imports from Canada, Mexico and European allies, and his proposed tariffs against China risk starting a trade war involving the world’s two biggest economies.
The US trade deficit with China was $336bn in 2017.
Administration officials have signaled support for imposing the tariffs in a dispute over allegations that Beijing steals, or pressures foreign companies to hand over technology, according to officials briefed on the plans.
The Chinese have also threatened to counterpunch if Trump goes ahead with the plan.
China has said that it’s prepared to retaliate should the U.S. proceed with the additional tariffs on Friday. Beijing could back off from an earlier promise to buy more American products including soybeans and natural gas, and announce tariffs against U.S. products that would hit Trump’s key base of political support, said Laura Baughman, president of The Trade Partnership and Trade Partnership Worldwide.
Beijing has also drawn up a list of $50bn in US products that would face retaliatory tariffs, including beef and soybeans – a shot at Trump’s supporters in rural US.
Trump’s calls for billions in tariffs could also complicate his efforts to maintain China’s support in his negotiations with North Korea.
The decision on the Chinese tariffs comes in the aftermath of Trump’s summit with North Korean leader Kim Jong-un.
Trump has coordinated closely with China on efforts to get Pyongyang to eliminate its nuclear arsenal. But he signaled that whatever the implications, “I have to do what I have to do” to address the trade imbalance.