President Trump announced Friday that the United States will implement a 25% tariff on $50 billion of goods, and if China retaliates, the U.S. will strike back with more tariffs.
According to a press release from the White House, the tariffs will be applied on $50 billion worth of goods with industrially significant technologies, including goods related to China’s Made in China 2025 strategic plan to dominate the emerging high-technology industries that will drive future economic growth for China, but hurt economic growth for the United States and many other countries.
According to the U.S. Trade Representative the tariffs cover 1,102 separate product categories, initially they were considering 1,333.
The first set of tariffs will apply 25% duty on 818 product lines, and the second set of tariffs contains 284 proposed product lines identified as benefiting from China’s industrial policy.
“The United States can no longer tolerate losing our technology and intellectual property through unfair economic practices,” the statement read, adding, “These tariffs are essential to preventing further unfair transfers of American technology and intellectual property to China, which will protect American jobs.”
If China engages in retaliatory measures, such as imposing new tariffs on United States goods, services, or agricultural products; raising non-tariff barriers; or taking punitive actions against American exporters or American companies operating in China, The United States will pursue additional tariffs.
China’s Commerce Ministry has responded, saying it “firmly objects” the U.S. trade measures toward China, adding, according to Reuters, that it harms interests on both sides.
The ministry added that China will impose a tariff measure of similar size and intensity.