White House – June 18, 2018
Dear Valued Customer:
Trump Threatens to Impose Additional Tariffs in Response to China’s Retaliatory Tariffs
On Monday evening Trump said in a statement that he has directed the United States Trade Representative (USTR) to identify an additional $200 billion worth of Chinese goods for tariffs at a rate of 10%. This statement was made in response to China’s plans to implement retaliatory tariffs of 25% on 545 tariff lines beginning on July 6, 2018.
Trump’s additional new tariffs of 10% would go into effect after the legal process is complete if China refuses to change it practices, and also if it insists on going forward with the new retaliatory tariffs in response to Trump’s Section 301 tariffs, which take effect on July 6.
On Friday, Trump had just announced a final list of tariffs on $50 billion worth of imports from China. These tariffs are being imposed to encourage China to change the unfair practices identified in the Section 301 action with respect to technology and innovation. They also serve as an initial step toward bringing balance to our trade relationship with China.
China then responded with its retaliatory tariffs of 25% against 545 tariff lines amounting to about $50 billion of mostly U.S. agricultural and auto targets, and some aquatic products, which also becomes effective on July 6. Trump reacted by saying that China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology and rather than altering those practices, it is now threatening U.S. companies, workers and farmers who have done nothing wrong.
Trump accused China of being determined to keep the U.S. at a permanent and unfair disadvantage, reflected in a massive and unacceptable $376 billion trade imbalance. He therefore concludes that further action must be taken to encourage China to change its unfair practices, open its market to U.S. goods, and accept a more balanced trade relationship with the U.S.
Trump went further to say that if China increases its tariffs yet again, we will meet that action by pursuing additional tariffs on another $200 billion of goods and that the U.S. will continue using all available tools to create a better and fairer trading system for all Americans.
James J. Boyle & Co. will continue to monitor these developments to keep our customers apprised.
Thank you for your attention and cooperation. If you have any questions, please contact your nearest JJB representative.
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