President Donald Trump on Thursday said he has given instructions to the United States Trade Representative to think about $100 billion in additional tariffs against China, CNBC informed.
“In light of China’s unfair retaliation, I have instructed the USTR to consider whether $100 billion of additional tariffs would be appropriate under section 301 and, if so, to identify the products upon which to impose such tariffs,” Trump said in a statement.
As of 8:25 p.m. ET, the implied open for the Dow Jones industrial average was more than 350 points lower. At one point, futures had implied a more than 450-point opening decline.
“POTUS is sending a message to China about consequences,” a White House official told CNBC.
China on Wednesday announced it would impose tariffs on 106 U.S. products, including soybeans, cars and whiskey.
The introduction of tariffs came as a retaliatory measure against Trump had previously revealed a list of Chinese imports he planned to target with tariffs. Some of Beijing’s measures, experts said, were less about hurting the U.S. economy and more about hitting Trump politically by targeting elements of his base.
Trump’s proposed tariffs include products used for robotics, information technology, communication technology and aerospace, areas in which Trump feels China could unfairly advance with the help of U.S. intellectual property.
Despite the severity of Trump’s threats on Thursday, he emphasized that the U.S. is still open to negotiation concerning China’s trade practices.
“The United States is still prepared to have discussions in further support of our commitment to achieving free, fair, and reciprocal trade and to protect the technology and intellectual property of American companies and American people,” Trump said in a statement.
Shortly after Trump’s announcement, U.S. Trade Representative Robert Lighthizer voiced support for the move, calling Trump’s response “appropriate.”
“President Trump is proposing an appropriate response to China’s recent threat of new tariffs. After a detailed investigation, USTR found overwhelming evidence that China’s unreasonable actions are harming the U.S. economy,” Lighthizer stated.
He also condemned China’s retaliation and the harm it could cause American workers, farmers and businesses.
“The appropriate response from China should be to change its behavior, as China’s government has pledged to do many times,” he said in a statement.
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