Trump says new tariffs, penalties on China could total $60B

Trump will ask U.S. Trade Representative Robert Lighthizer to consider whether the actions by China should result in increased tariffs on their imports. Within 15 days, the USTR is expected to publish a proposed list of products and recommended tariff increases for public comment.

The decision follows a separate move by Trump to impose new tariffs on imports of steel and aluminum. That decision affected imports of those metals to the United States from around the world and prompted fears of a trade war.

While the steel and aluminum tariffs were targeted toward China, the new measures are even more focused on Beijing and could draw more political support from Congress. The steel and aluminum tariffs have been criticized by many Democratic and Republican lawmakers.

The new order responds to longstanding criticisms from U.S. businesses that China uses a number of methods to illegally acquire U.S. technologies, sometimes through requirements imposed on U.S. companies that want to sell their products in China.

“[The action] is designed to offset the gains that the Chinese have received through their unfair trade practices,” a senior administration said. 

The president also is asking the USTR to pursue dispute settlement through the World Trade Organization to address China’s discriminatory licensing practices. 

And Trump is tasking Treasury Secretary Steven Mnuchin to propose executive branch action at the Committee on Foreign Investment in the United States (CFIUS), which overseas foreign investments in the U.S. for national security problems.

The CFIUS recently rejected the takeover by Singapore-based Broadcom of U.S.-based Qualcomm on national security grounds, arguing Broadcom would reduce Qualcomm’s research and development budget to such an extent that it would give Chinese telecommunications firm Huawei an advantage in developing advanced technologies such as 5G wireless networks.

The administration argues that the CFIUS must be strengthened to protect U.S. national security from predatory practices used by the Chinese to acquire U.S. technology. 

A U.S. investigation found that China uses various tactics to put pressure on U.S. companies to transfer their technology to Chinese businesses — including through requirements imposed on U.S. companies for the right to do business in the important market of China.