US Dollar Value Falls As Trump Imposes 25 % Tariff On Chinese Imports Worth $50 Billion

| June 16 , 2018 , 12:31 IST

The value of the US dollar fell on Friday as US President Donald Trump announced tariffs of 25 percent targeting $50 billion worth of Chinese imports from 'industrially significant' technologies, to 'punish' the alleged theft of American intellectual property.

"The United States can no longer tolerate losing our technology and intellectual property through unfair economic practices," Trump said in the statement.

"These tariffs are essential to preventing further unfair transfers of American technology and intellectual property to China, which will protect American jobs," said Trump.

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Trump also warned of 'additional tariffs' if China should retaliate with its own tariffs on American goods and service exports.

US Trade Representative Robert Lighthizer specified that the US would first collect duties on 818 Chinese imports worth $34 billion as of July 6 and then collect further duties on 284 goods valued at $16 billion later on, bringing the total to $50 billion.

China responded swiftly with its own retaliatory tariffs on US products.

"We will immediately launch tax measures of equal scale and equal strength," China's Ministry of Commerce said in a statement.

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China also called on other countries to "take collective action" against this "outdated and backwards behavior."

Apart from China, last month US President Trump also imposed tariffs on imports of steel and aluminum from Canada, the European Union and Mexico, resulting in backlash and retaliatory tariffs from all three.

Earlier in March, Trump had engaged in a trade-war of sorts with China, with both the economic giants announcing increasing tariffs on each other. However, the matter was finally by May 20 when China's Vice Premier Liu He confirmed that the US and China 'will not fight a trade war' and that China would increase its imports from the US to reduce the trade deficit.