Trump Targets Tech, Not Textiles

Trump Targets Tech, Not Textiles

With the ongoing news about an immenent trade war between the US and China, we thought that we’d give you a brief summary of the key points in what’s becoming a media showdown between the two nations.

 

  • US President Donald Trump plans to impose punitive 25% tariffs on $50 billion worth of Chinese imports into the U.S.  Not surprisingly, China retaliated saying it would put 25% tariffs on $50 billion worth of imports from the U.S.

 

  • The US tariffs would effect 800 products imported from China.  None of them are textile, apparel or footwear related.

 

  • Chinese tariffs will affect 659 products.  Products will mainly be agriculture, cars and crude oil.

 

  • The trade tensions center around technology and intellectual property. 

 

  • Mr. Trump has been widely quoted as saying, “The United States can no longer tolerate losing our technology and intellectual property through unfair economic practices.” 

 

  • There is a lot of machinery and other products on the lists, “containing industrially significant technologies, including those related to China’s “Made in China 2025” industrial policy,” said William E. Perry, attorney and for Senior Investigator for the Office of Antidumping Investigation, in an email.

 

  • “Made in China 2025” refers to Beijing’s industrial policy of subsidising domestic companies developing strategic advanced technologies, including robotics and artificial intelligence.

 

  • Mr. Trump sees Made in China as a “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”, he was quoted as saying in an official White House statement.

 

  • Mr Trump said the tariffs were "essential to preventing further unfair transfers of American technology and intellectual property to China, which will protect American jobs."  (BBC)

 

  • China said Trump’s move invalidated recent high-level negotiations aimed at averting a trade war.

 

  • “All the previous agreements reached through talks will become invalid,” China's Ministry of Commerce said in the statement.   (SCMP)

 

  • Mr. Trump insisted he was still open to negotiation. “I have a wonderful relationship with President Xi . We’ll all work it out. He understands it’s unfair,” he told Fox News in an interview.

 

  • Mr Trump tried a similar tactic with Canada, Mexico and the EU, only to see the allies refuse to negotiate before exemptions from new US aluminium and steel tariffs expired last month.  (Financial Times)

 

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