US-China trade war escalates
In an escalation to the trade war with China, US President Donald Trump on Monday announced imposition of new tariffs on additional USD 200 billion worth of Chinese imports. The new additional tariff structure would be effective September 24. Trump alleged China has been unwilling to change its unfair trade practices, adding the fresh tariff would be at 10 percent until the year end, but would increase to 25 per cent level from January 1.
The administration under the US president confirmed the development as a result of the Section 301 process that the USTR has been pursuing for more than 12 months. A list of such items was released by the US Trade Representatives (USTR).
A study by the USTR suggested China has been engaged in numerous unfair policies and practices relating to United States technology and intellectual property – such as forcing United States companies to transfer technology to Chinese counterparts, Trump said.
These practices plainly constitute a grave threat to the long-term health and prosperity of the United States economy, he added.
Commenting on the USTR study, Trump said, “for months, we have urged China to change these unfair practices, and give fair and reciprocal treatment to American companies. We have been very clear about the type of changes that need to be made, and we have given China every opportunity to treat us more fairly.”
“But, so far, China has been unwilling to change its practices,” he added.
“China, however, still refuses to change its practices – and indeed recently imposed new tariffs in an effort to hurt the United States economy,” Trump said.
The US president also sent a strong warning to the Asian giant saying, “further, if China takes retaliatory action against our farmers or other industries, we will immediately pursue phase three, which is tariffs on approximately USD 267 billion of additional imports.”
China has had many opportunities to fully address US concerns, Trump said.
“I urge China’s leaders to take swift action to end their country’s unfair trade practices. Hopefully, this trade situation will be resolved, in the end, by myself and President Xi of China, for whom I have great respect and affection,” he added.
