In Donald Trump’s latest head-spinning move, the tariffs that were on hold with China are back on this morning. The announcement was made in a statement from the White House that read, in part:
“To protect our national security, the United States will implement specific investment restrictions and enhanced export controls for Chinese persons and entities related to the acquisition of industrially significant technology. The proposed investment restrictions and enhanced export controls will be announced by June 30, 2018, and they will be implemented shortly thereafter.
The United States will continue to pursue litigation at the World Trade Organization for violations of the Agreement on Trade-Related Aspects of Intellectual Property Rights based on China’s discriminatory practices for licensing intellectual property. The United States filed the case regarding these violations on March 23, 2018.
Under Section 301 of the Trade Act of 1974, the United States will impose a 25 percent tariff on $50 billion of goods imported from China containing industrially significant technology, including those related to the “Made in China 2025” program. The final list of covered imports will be announced by June 15, 2018, and tariffs will be imposed on those imports shortly thereafter.”
“The move, which the White House announced Tuesday morning, comes just over a week after Treasury Secretary Steven Mnuchin said the trade war between the two countries was ‘on hold’ and will ratchet up tensions just before Commerce Secretary Wilbur Ross is set to arrive in Beijing this week for further talks.”
“The announced measures also come amid bipartisan criticism of the president’s softening of penalties for ZTE, a Chinese telecom company that had traded with Iran and North Korea in defiance of U.S. sanctions.
‘I think this is a bone to the Congress. I don’t know if it’s the right thing to do,’ said Derek Scissors, a China expert at the conservative American Enterprise Institute.”
https://twitter.com/jonathanvswan/status/1001462822755291137
