- The Trump administration on Tuesday announced that it would move forward with trade restrictions on China.
- The White House said a final list of Chinese products subject to new tariffs would be announced June 15.
- The move comes despite a preliminary trade deal reached by the Trump administration and Chinese officials last week.
- Commerce Secretary Wilbur Ross is scheduled to head to China to continue trade talks on Saturday.
The Trump administration on Tuesday moved forward with restrictions on Chinese investment in the US and tariffs on $US50 billion worth of Chinese goods despite talks that seemed to alleviate trade tensions between the two countries.
The White House announced Tuesday that the crackdown on Chinese trade would take effect in June. It said the final list of goods subject to a new 25% tariff would be released June 15, with more details on investment restrictions coming by the end of the month.
The moves come after the Chinese government and Trump administration officials agreed to the outline of a trade truce earlier this month. It is unclear how Tuesday’s announcement will affect the broader talks, but it seems likely to reignite the burgeoning tensions between the two countries.
When the deal was announced, Treasury Secretary Steven Mnuchin said tariffs on Chinese goods were “on hold.”
Commerce Secretary Wilbur Ross will head to China to talk with the government on Saturday. The Trump administration has sought to reduce the US trade deficit with China by increasing the amount of US exports to the country.
Trump also said a deal to ease sanctions on the Chinese tech giant ZTE would be forthcoming. Officials in the Trump administration have sought to distance ZTE from the trade talks, but the president previously linked the two issues.
Here’s a rundown of the restrictions confirmed by the White House:
- A crackdown of Chinese investment into “industrially significant technology.” The new rules will prevent Chinese companies from investing in and getting access to technology developed in the US that could be copied and used by Chinese firms or the Chinese government.
- The US will move forward with a complaint against China at the World Trade Organisation. The WTO case is based on US allegations that Chinese firms unfairly acquire US intellectual property through forced transfers and mandated partnerships.
- A 25% tariff on $US50 billion worth of Chinese goods. The tariffs will be focused on the tech sectors and high-growth industries identified in China’s “Made in China 2025” program. The Trump administration will announce the final list on June 15, with the tariffs taking effect “shortly thereafter,” the White House said.