The Trump Administration said it would move forward with plans to impose 25% tariffs on some $50 billion in Chinese-made goods, officials said Tuesday.
The move followed a brief hold on the tariffs put in place about 10 days ago as officials reportedly sought leverage to negotiate a deal with its largest trading partner.
Quoting a White House statement, CNN reported that the president plans to take “multiple steps” to protect technology and intellectual property from certain discriminatory and burdensome trade practices by China.”
“For many years, China has pursued industrial policies and unfair trade practices – including dumping, discriminatory non-tariff barriers, forced technology transfer, overcapacity and industrial subsidies – that champion Chinese firms and make it impossible for many United States firms to compete on a level playing field,” the White House statement read.
“China’s industrial policies, such as its 'Made in China 2025' plan, harm companies in the United States and around the world,” the statement went on, adding that China imposes much higher tariffs on U.S. exports than the U.S. imposes on China and that China’s average tariff rate is nearly three times the average U.S. rate.
“In 2018, alone,” the statement continued, “the Trump administration has found dumping or unfair subsidies on 13 different products, including steel wheels, cold-drawn mechanical tubing, tool chests and cabinets, forged steel fittings, aluminum foil, rubber bands, cast iron soil pipe and fittings, and large diameter welded pipe.”
In addition, it said, “The cost of China’s intellectual property theft costs United States innovators billions of dollars a year, and China accounts for 87% of counterfeit goods seized coming into the United States.”
The United States Trade Representative’s Section 301 investigation also identified four of China’s aggressive technology policies that put 44 million American technology jobs at risk including: forced technology transfer; requiring licensing at less than economic value; Chinese state-directed acquisition of sensitive United States technology for strategic purposes; and outright cyber theft.
The overall effect on furniture remains unclear, although opponents and proponents of the tariffs have mentioned furniture in their public comments on the issue. In 2017, China shipped about $13.7 billion in furniture to the U.S, which was flat from the year before. However, it remained by far the largest shipper of furniture to the market. By comparison, second place Vietnam shipped $3.9 billion in furniture to the U.S. the same year, up 15% from the year before.
The White House said a final list of covered imports will be released June 15. This list is expected to cover items included on the “Made in China 2025” program.
