June 15, 2018-U.S. President Donald Trump announced plans today to impose 25 percent tariffs on up to $50 billion of Chinese imports related to “industrial significant technologies.”
The tariffs will target emerging high-technologies outlined in China’s “Made in China 2025,” a strategic plan China published in 2015. That plan proposes to remake the Chinese economy from a low-cost manufacturing hub to a higher-value producer in 10 key sectors, including green technologies, robotics, aerospace, transportation, information technology, and pharmaceuticals and medical devices.
Many analysts, such as those at the Council on Foreign Relations, view China’s strategic vision as an industrial threat. Trump echoed that sentiment in his announcement.
“The United States can no longer tolerate losing our technology and intellectual property through unfair economic practices,” a White House statement read. “These tariffs are essential to preventing further unfair transfers of American technology and intellectual property to China, which will protect American jobs.” The White House statement warned that the United States would “pursue additional tariffs” if China launches retaliatory measures.
Meanwhile, earlier this week, Chinese Premier Li Keqiang said China plans to expand imports of a wider range of consumer goods, including pharmaceuticals, and clothing and household appliances, according to a Chinese government news release. China’s promise to lower tariffs on U.S. goods, in particular, is seen as a way to alleviate rising trade tensions with the United States. “Expanding imports is crucial for upholding free trade,” Li said June 13 at a State Council executive meeting.
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