Following the imposition of 25 percent tariffs by the US on $50 billion worth of imports from China on Friday, June 15, the US president Donald Trump has again threatened to impose an additional 10 percent tariffs on Chinese goods worth $200 billion, as announced in a statement published by the White House.
Accordingly, Donald Trump has stated that the 25 percent tariffs have been imposed to encourage China to change the unfair practices identified in Section 301 of the US Trade Act with respect to technology and innovation. The US president added that China has unfortunately determined that it will raise tariffs on $50 billion worth of US exports, which shows that China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology.
As a response to China’s decision, Trump has directed the United States Trade Representative (USTR) 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.
Meanwhile, Robert Lighthizer, the US Trade Representative, has said that he supports Trump’s action and added that the USTR will announce the additional tariffs proposed and provide a similar legal process as the recently implemented 25 percent tariffs. No additional tariffs will go into effect until the legal process is complete, according to the USTR.