Increase on tariffs proposed across $200 billion worth of Chinese products from 10 percent to 25 percent designed to pressure China to “stop the retaliation against U.S. workers.”
U.S. Trade Representative Robert Lighthizer on Wednesday confirmed that President Donald Trump asked him to consider increasing the proposed duty across $200 billion worth of annual imports from China from 10 percent to 25 percent.
Trump’s request is the latest move in his administration’s ongoing process under Section 301 of the Trade Act of 1974 to impel China to improve treatment of U.S. businesses.
After China took steps to retaliate against U.S. Section 301 duties of 25 percent tabbed across $50 billion worth of Chinese goods in 2017 import value, the Trump administration on July 10 released a list of goods across another $200 billion worth of Chinese products that it marked for additional tariffs of 10 percent.
The Office of the U.S. Trade Representative is extending the conclusion of the comment period from Aug. 30 to Sept. 6 for the proposed $200 billion worth of duties. The interagency Section 301 Committee, led by USTR, will hold a public hearing on these proposed duties at the International Trade Commission in Washington, D.C., from Aug. 20 to Aug. 23.
“The increase in the possible rate of the additional duty is intended to provide the administration with additional options to encourage China to change its harmful policies and behavior and adopt policies that will lead to fairer markets and prosperity for all of our citizens,” Lighthizer said in a statement. “The United States has joined forces with like-minded partners around the world to address unfair trade practices such as forced technology transfer and intellectual property theft, and we remain ready to engage with China in negotiations that could resolve these and other problems detailed in our Section 301 report.”
A senior administration official told reporters during a conference call Wednesday that USTR remains in contact with its Chinese counterparts regarding ways to improve trade relations.
But that official cited as continuing problematic Chinese policies the use of “data interventions,” implementation of “Made in China 2025” that seeks “to put U.S. businesses out of work” and choosing “national champions” — a policy in which business entities are expected to not only seek profit but advance national interests in line with government objectives.
After the administration’s initial actions to restrict imports from China, Beijing continues to “double down” on its market-distorting practices affecting U.S. businesses, another senior administration official said during the call.
“We just continue to urge them to listen to the things that we’re saying: Change the harmful behavior; stop the retaliation against U.S. workers, farmers, ranchers and businesses; open its market; and engage in true market competition,” the official said. “And basically, we hope that they will agree to do that. But that’s how we got to where we are, and that’s the same development that’s going to happen today.”
The official said the Trump administration is in the process of reviewing comments it collected through Tuesday on proposed 25 percent tariffs across $16 billion worth of imports from China in 2017 value, which would be the second tranche of Section 301 tariffs after another round of 25 percent tariffs was proposed across $34 billion worth of goods on July 6.
USTR: Trump asked for potential tariff hike
