Trump sets date for tariffs on $50bn worth of Chinese goods

The President of the United States "changed course" and decided to impose tariffs on Chinese goods, despite the fact that on May 20 Washington and Beijing reached the first agreement in negotiations to avoid a trade war.

In June, the United States will introduce 25 percent customs duties on goods imported from  CHINA worth a total of $ 50 billion. President Donald Trump made this decision , the White House said in a statement.

Tariffs are imposed on goods related to “manufacturing-relevant technologies, including those related to the Made in China 2025 program” (a strategic plan to modernize ten industries in China).

The full list of goods that will be subject to duties has not been disclosed and will be published on June 15. The Trump administration's announcement, however, mentions that the United States has a 2.5% tariff on Chinese car imports and 25% on American imports in China.

The United States will also continue its dispute with China at the WTO on suspicion of Beijing's discriminatory technology licensing requirements. In addition, the White House promises to impose targeted restrictions on investments against individuals and companies from China associated with the "acquisition of industrially significant technologies." Their list will be presented on June 30.

The United States has announced the imposition of tariffs on Chinese goods before, but the White House did not name specific dates. Beijing also promised restrictions on US imports in response.

On May 20, the parties released a statement agreeing to take steps to reduce the trade deficit between the US and China. After that, US Treasury Secretary Steven Mnuchin announced the suspension of the trade war, and Chinese Vice Premier Liu He spoke about the same.

The New York Times calls Trump's decision a "change of course" and attributes it to an ideological struggle between protectionist "economic nationalists" and more "mainstream advisers" like Mnuchin who fear that tariffs and restrictions will hurt the market. the nationalists won this round,” the newspaper writes, noting that US Secretary of Commerce Wilbur Ross will still go to Beijing to continue negotiations.

From the very beginning, Washington demanded that China reduce its trade deficit by at least $ 200 billion and abandon some subsidies under the Made in China 2025 program. As BLOOMBERG wrote, it is this program that worries Washington: American business fears that it will not be able to compete with the modernized Chinese industry, if it receives serious support from the state. One type of support is said to be Beijing's use of tactics to force companies to transfer their "industrial developments and patents."

The White House report states that " China has aggressively sought to obtain technology from American companies and downplay American creativity." Earlier, the US Trade Representation (USTR) conducted an investigation to find out whether Beijing uses such methods of obtaining technology.​​