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US-China Trade War: Trump To Impose Additional $200 Billion Tariffs On Chinese Imports

DIVYIA ASTHANA | 0
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| July 11 , 2018 , 14:19 IST

US President Donald Trump, continuing with the trade war with China, on Tuesday identified an additional $200 billion in Chinese products that could be hit with import tariffs, after China retaliated to the initial US tariffs on $34 billion in Chinese goods which came into effect on Friday.

The latest tariffs would impact consumer products such as TVs, clothing, bedsheets, and air conditioners, which were left out of the first round of import levies implemented on Friday. The new tariffs would be imposed after the end of a two-month comment period.

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According to US administration officials, the tariff fight is aimed at forcing China to stop stealing US intellectual property and to abandon policies that force US companies to surrender their trade secrets in exchange for access to the Chinese market.

"These practices are an existential threat to America's most critical comparative advantage and the future of our economy," said Robert Lighthizer, the president's chief trade negotiator to The Washington Post.

China has vowed to respond in kind to any trade tariffs applied by the US. However, since China only bought around $130 billion in U.S. goods last year in comparison to the $506 billion worth bought by US, China would run out of American products to tax before the US would run out of Chinese imports.

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Experts view that even if China runs out of American products to tax, it would likely retaliate in other ways, possibly hitting US firms in China with unplanned inspections, delays in approving financial transactions and other administrative hurdles.

Meanwhile, the Trump administration said that its crack down on China was for a range of trade practices involving intellectual property and technology costing US companies an estimated $50 billion annually.

US President Trump said that the tariffs implemented on Chinese imports was to match the losses faced by the US companies.

The president's chief trade negotiator Lighthizer termed China's retaliation as being "without any international legal basis or justification."