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Trump proposes $50 billion tariffs on Chinese goods, claiming unfair trade practices

Trump will direct the U.S. trade representatives to develop a list of specific tariffs within 15 days.
Credit: AFP/Getty Images
This photo taken on March 9, 2018 shows workers loading ships at a port in Nantong in China's eastern Jiangsu province.

President Trump ordered trade officials Thursday to draw up a list of tariffs for Chinese goods, despite warnings from some American business groups that the move will lead to higher prices for all consumers.

Trump and aides said the yet-to-specified tariffs are designed to retaliate for what they called unfair Chinese trade practices — "China's economic aggression," a White House statement said — while the Chinese vowed retaliatory taxes on American imports.

Trump is also expected to announce the filing of formal complaints with the World Trade Organization, the result of an investigation by the U.S. trade representative's office.

Details of the tariffs, and the dates they take effect, are yet to come.

Under a memorandum to be signed at the White House, Trump was to order the U.S. trade representatives to develop a list of specific tariffs within 15 days; that list would be subject to a period of public comment before they take effect.

Two administration officials confirmed Trump's plans, speaking on condition of anonymity so as not to preempt the president's remarks.

The United States is aiming for tariffs on $50 billion of Chinese imports, matching the amount they say U.S. companies have lost because of Chinese trade practices.

U.S. businesses are expected to comment against tariffs, having asked Trump not to take such a step. Last week, a coalition of retail groups sent a letter to Trump warning that tariffs of China would invite retaliation affecting their businesses, leading to higher prices on an array of consumer goods.

Noting that the United States already levies import taxes on items like clothes and shoes, the group said that new tariffs "would worsen this inequity and punish American working families with higher prices on household basics like clothing, shoes, electronics, and home goods."

China has indeed vowed to hit U.S. goods with tariffs of their own if Trump follows through on sanctions.

"China will certainly take all necessary measures to resolutely defend its legitimate rights and interests," said statement from its Ministry of Commerce just hours before Trump's formal announcement.

Trump's expected tariffs drew support from some lawmakers, including Democrats.

Senate Minority Leader Charles Schumer, D-N.Y, said he agreed with findings that China has obtained trade advantages by basically stealing U.S. intellectual property and forcing U.S. businesses to share technology as a condition of doing business in the country.

"Let's make sure that China starts playing by the rules," Schumer said.

Trump is expected to announce the results of an investigation by the office of the U.S. trade representative on Chinese trade practices, with claims that include cyber theft of American trade secrets.

Bracing for the potential tariffs, Chinese officials have denied the U.S. allegations. They have also said they are planning to open up their economy more to level the playing field between Chinese and foreign firms.

“I hope both China and the U.S. will act rationally, and not be led by emotions, and avoid a trade war,” Premier Li Keqiang told reporters this week.

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