President Trump is all set to impose a new round of tariffs on $60 billion Chinese imports primarily targeting technology, consumer electronics, consumer goods and telecommunication sectors. The tariffs linked with “Section 301” as per US Trade Act 1974 could become a reality soon. The list of the products affected can near 100. This is seen as a retaliatory move against Chinese investment policies which press US companies to share their technology secrets to be allowed to operate in China.
There is also a proposal to tap investments and thereby impose restrictions on Chinese firms on top of national security restrictions. The tariffs if imposed can hurt the American families as the costs of many goods will rise. There is a $375 billion trade surplus run by China with the US a figure US administration seeks to reduce. Trump had promised his voters to protect American workers from unfair imports which he kept by pulling out from the Trans-Pacific Partnership trade deal. Trump administration is on a drastic overhaul as it is in middle of reforming NAFTA-North American Free Trade Agreement in addition to the pressing tariffs on steel and aluminium.
The new round of tariffs directly and outrightly targeting on China can invite a tough response from Beijing.