The Trump administration released Tuesday a list of fresh duties of 10 percent on $200 billion in Chinese goods, in a move which fulfills President Donald Trump’s recent threats to escalate the already full-blown trade war with Beijing.
“The $200 billion figure we’re looking at is roughly equal to their exports to us,” a senior administration official said, adding that a number of the 6,031 products on the list belong to Made in China 2025 sectors, including technology. However, the new tariffs will first undergo a two-month review process, with hearings August 20-23 before going into effect, CNBC reports.
The official further noted that to compile the list of goods, the U.S. Trade Representative considered what could cause disruptions to China’s economy and added that the administration has clearly indicated to China what its concerns about trade were, but that Beijing has been unresponsive.
“For over a year, the Trump Administration has patiently urged China to stop its unfair practices, open its market, and engage in true market competition,” U.S. Trade Representative Robert Lighthizer said in a statement.
He also said that as a response, China decided to retaliate instead of address the concerns the U.S. had.
Last Friday, President Trump warned that if Beijing imposed retaliatory duties on the $34 billion in U.S. tariffs he would slap new ones on at least $500 billion in Chinese goods. Despite the President’s threats, China retaliated shortly after the $34 billion went into effect last week.
Regarding the new tariffs, Lighthizer issued a statement saying “As a result of China’s retaliation and failure to change its practices, the President has ordered USTR to begin the process of imposing tariffs of 10 percent on an additional $200 billion of Chinese imports” and added that the response was appropriate “under the authority of Section 301 to obtain the elimination of China’s harmful industrial policies.”