Trump Announces $50bn In China Tariffs

The US plans to impose tariffs on about $50bn in Chinese goods and limit the country’s investment in the US in retaliation for years of alleged intellectual property theft.

The White House said the actions were necessary to counter unfair competition from China’s state-led economy.

It said years of talks had failed to produce change. China said it was ready to retaliate with “necessary measures”.

The latest sanctions have raised fears of a global trade war.

US stock markets sank ahead of the announcement, but losses were reduced after President Trump said the US and China were negotiating.

Signing a memo related to the sanctions, Mr Trump said he was looking for “reciprocal” trade terms for American companies.

The tariffs follow an investigation of Chinese policies ordered by Mr Trump in August.

The White House said the review found a range of “unfair” practices in China, including restrictions on foreign ownership that pressured foreign companies into transferring technology.

The review also found evidence that China imposes unfair terms on US companies; steers investments in the US to strategic industries; and conducts and supports cyber attacks.

The White House said it has a list of more than 1,000 products that could be targeted by tariffs. Businesses will have the opportunity to comment before the final list goes into effect.

The US is also exploring ways to limit Chinese investment in the US and will seek to bring complaints about unfair licensing terms to the World Trade Organization, officials said.

America’s top trade negotiator, Robert Lighthizer, said protecting US technology was critical to America’s economic future.

Source: BBC