• 3 hours Don't Write Off Cryptocurrencies Just Yet
  • 19 hours Trade In Counterfeit Goods Hits Half A Trillion Dollars
  • 1 day Tesla Struggles To Compete In European Market
  • 2 days China: The New King Of Caviar
  • 2 days Gold Mid-Tiers Rally On Fresh Earnings Reports
  • 3 days Can The British Pound Overcome Brexit?
  • 3 days Is A Gold Breakout Near?
  • 4 days Federal Reserve Downgrades U.S. Growth And Cuts Rate Hikes
  • 4 days Disney Beats Out Comcast In $71.3B Mega-Merger
  • 4 days The Feds Continue To Prop Up Equities Markets
  • 4 days Bejing's Sway In South China Sea Is Fading
  • 5 days Saudis Eye Billions As Stocks Get Emerging Market Boost
  • 5 days Airbnb In Acquisition Mode Ahead Of IPO
  • 5 days Gold Hangs At $1,300 Ahead Of Fed Meeting
  • 5 days Champagne Sales Slow As European Economic Worries Grow Louder
  • 6 days Putin Signs “Digital Iron Curtain” Into Law
  • 6 days Russian Metals Magnate Sues U.S. Over Sanctions
  • 6 days Tesla Looks To Jump Into Indian Market
  • 6 days Global Banks Lay Groundwork To Re-Inflate Asset Prices
  • 7 days Homeowners Experiment With Risky New Investment Trend
Russian Metals Magnate Sues U.S. Over Sanctions

Russian Metals Magnate Sues U.S. Over Sanctions

Oleg Deripaska, a Russian metals…

Tesla Looks To Jump Into Indian Market

Tesla Looks To Jump Into Indian Market

Elon Musk is not giving…

Fred Dunkley

Fred Dunkley

Writer, Safehaven.com

Fred Dunkley is a tech analyst, writer, and seasoned investor. Fred has years of experience covering global markets and geopolitics. 

Contact Author

  1. Home
  2. News
  3. Breaking News

Trump Hits China With $50 Billion In Tariffs

Trump

American Allies won a tariff battle with Trump on Thursday, but there was no backing down on the presidential order to slap massive tariffs on Chinese products in a move to punish Beijing and equalize trade--despite trade war fears and cries of alarm from the retail corridors.

At 12:30p.m. EST Thursday, Trump signed an order to impose $50 billion worth of tariffs on Chinese imports, taking the ‘America First’ trade policy to a potentially dangerous new level.

The amount represents what U.S. officials say Chinese trade practices have cost American business.

The president has now ordered trade officials to come up with a list of specific good to target within 15 days.

Earlier this week, Trump vowed to make good on his campaign promise to equalize US-China trade relations by slapping a $60-billion tariff package as punishment for stealing and extorting American trade secrets.

That figure was double what Trump’s senior aides had proposed.

Ahead of the announcement, China vowed to respond in equal measure:

"China will certainly take all necessary measures to resolutely defend its legitimate rights and interests," if the United States imposes new restrictions, the Ministry of Commerce said in a statement on Thursday.

Trump also called for new limits on Chinese investment in U.S. technology in a bid to stop China from strategically acquiring new technologies through U.S. investments.

The tariffs are meant to target over 100 products that were specifically developed by the Chinese using stolen trade secrets and other intellectual property infringements, or by forcing companies to hand them over in return for market access in China. 

The retail sector is up in arms. Related: Will Regulatory Rollbacks Make Banks 'Too Big To Fail?'

"The imposition of sweeping tariffs would trigger a chain reaction of negative consequences for the U.S. economy, provoking retaliation; stifling U.S. agriculture, goods and services exports; and raising costs for businesses and consumers," said the letter, signed by leaders of the U.S. Chamber of Commerce, the National Retail Federation, and other groups.

For the EU, however, Thursday was a victory that narrowly avoids a trade war with allies.

At the eleventh hour, Trump backtracked on steel and aluminum tariffs that would have targeted U.S. allies, exempting the European Union after weeks of retributive threats, the most recent which would have seen a 3-percent tax on the turnover of U.S. tech giants.

On Thursday, U.S. Trade Representative Robert Lighthizer said the EU would be exempted from the 25-percent tariff on steel imports and the 10-percent tariff on aluminum, in addition to a tax on European cars Trump had threatened.

This is the second time Trump has backtracked on the steel and aluminum tariffs, earlier exempting Canada, Mexico and Australia.

Earlier this week, the European Commission proposed a new tax rate that would target companies with over $920 million in annual global revenues and over 50 million euros in taxable EU revenues annually. The 3-percent tax would hit giant tech companies like Google and Facebook particularly hard. Amazon’s marketplace transactions would also likely have been affected, despite a proposed exemption for e-commerce groups.

The proposed tax could have earned over $6 billion for EU coffers, but most analysts believed it would have been challenging—at best—to get past EU states and lawmakers.

By Fred Dunkley for Safehaven.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment