U.S. President Donald Trump has approved a plan to impose punishing tariffs on tens of billions of dollars of Chinese goods as early as Friday, a move that could put his trade policies on a collision course with his push to rid the Korean Peninsula of nuclear weapons.
Mr. Trump has long vowed to fulfill his campaign pledge to clamp down on what he considers unfair Chinese trading practices. But his calls for billions in tariffs could complicate his efforts to maintain China’s support in his negotiations with North Korea.
Mr. Trump met with several Cabinet members and trade advisers on Thursday and was expected to impose tariffs on at least $35 billion to $40 billion of Chinese imports, according to an industry official and an administration official familiar with the plans. The amount of goods could reach $55 billion, said the industry official. The officials spoke on condition of anonymity in order to discuss the matter ahead of a formal announcement.
If the president presses forward as expected, it could set the stage for a series of trade actions against China and lead to retaliation from Beijing. Trump has already slapped tariffs on steel and aluminum imports from Canada, Mexico and European allies, and his proposed tariffs against China risk starting a trade war involving the world’s two biggest economies.
The decision on the Chinese tariffs comes in the aftermath of Mr. Trump’s 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 signaled that whatever the implications, “I have to do what I have to do” to address the trade imbalance.
Administration officials have signalled support for imposing the tariffs in a dispute over allegations that Beijing steals or pressures foreign companies to hand over technology, according to officials briefed on the plans. China has targeted $50 billion in U.S. products for potential retaliation.
Pompeo raised trade deficit with Xi
Secretary of State Mike Pompeo raised the trade issue directly with China on Thursday, when he met in Beijing with President Xi Jinping and other officials, the State Department said.
“I stressed how important it is for President Trump to rectify that situation so that trade becomes more balanced, more reciprocal and more fair, with the opportunity to have American workers be treated fairly,” Mr. Pompeo said Thursday during a joint news conference with Foreign Minister Wang Yi.
China threatens retaliation
The Chinese have threatened to counterpunch if the president goes ahead with the plan. Chinese officials have said they would drop agreements reached last month to buy more U.S. soybeans, natural gas and other products.
“We made clear that if the U.S. rolls out trade sanctions, including the imposition of tariffs, all outcomes reached by the two sides in terms of trade and economy will not come into effect,” foreign ministry spokesman Geng Shuang said on Thursday.
Beijing has also drawn up a list of $50 billion in U.S. products that would face retaliatory tariffs, including beef and soybeans a shot at Trump’s supporters in rural America.
The U.S. and China have been holding ongoing negotiations over the trade dispute. The United States has criticised China for the aggressive tactics it uses to develop advanced technologies, including robots and electric cars, under its “Made in China 2025” programme. The U.S. tariffs are designed specifically to punish China for forcing American companies to hand over technology in exchange for access to the Chinese market.
The administration is also working on proposed Chinese investment restrictions by June 30. So far, Mr. Trump has yet to signal any interest in backing away.
