It's trade war between US & China as Donald Trump slaps tariffs on imports

WASHINGTON: Vowing to cut US trade deficits and protect the nation's high-tech "crown jewels", President Donald Trump said on Friday he's levying a 25 per cent tariff on up to $50 billion worth of Chinese imports, instantly escalating a trade dispute between the world's two largest economies.

Trump said he was fulfilling a campaign pledge to crack down on what he contends are China's unfair trade practices and efforts to undermine US technology and intellectual property. During an impromptu appearance on the White House North Lawn, the president hailed his "very big tariffs" on China. "You know we have the great brain power in Silicon Valley, and China and others steal those secrets. And we're going to protect those secrets. Those are crown jewels for this country," Trump said on "Fox & Friends".

Asked about inciting a trade war, he said, "There is no trade war. They've taken so much already."

The US tariffs will cover 1,102 Chinese product lines worth about $50 billion a year. Those include 818 products, worth $34 billion a year, remaining from a list of 1,333 the administration released in April. About 500 goods, including televisions and some pharmaceuticals, initially targeted for sanctions in March were stricken from the list at the behest of US firms that rely on imports, according to a senior administration official who briefed reporters on condition of anonymity.

The government will start to collect the tariffs from July 6. The administration also is targeting an additional 284 Chinese products, which it says benefit from China's aggressive industrial policies, worth $16 billion a year, but won't impose those tariffs until it collects public comment. US companies that rely on the targeted imports - and can't find substitutes - can apply for exemptions from the tariffs.

Trump has already put tariffs on steel and aluminum imports from Canada, Mexico and European allies, and his proposed tariffs against China risk a major trade war involving the world's two biggest economies. Trump's decision comes in the aftermath of his summit with North Korean leader Kim Jong-un.

The president has coordinated closely with China on efforts to get Pyongyang to eliminate its nuclear arsenal. But he signal;ed that whatever the implications for that or other issues, "I have to do what I have to do" to address the trade imbalance.

The administration is also working on proposed Chinese investment restrictions by June 30. The US tariffs are a response to China's aggressive attempts to challenge US technological dominance, including outright theft of trade secrets and forcing US companies to share technology in exchange for access to the Chinese market.

Wall Street has viewed the escalating trade tensions with wariness, fearful that they could strangle economic growth and undermine the benefits of the tax cuts Trump signed into law last year. "Imposing tariffs places the cost of China's unfair trade practices squarely on the shoulders of American consumers, manufacturers, farmers, and ranchers," said Thomas Donohue, president of the US Chamber of Commerce.