Mere hours after the Trump administration announced new tariffs on $50 billion worth of Chinese goods, Beijing hit back, escalating the trade dispute between the world’s two largest economies even as the U.S. continues to seek Chinese support in keeping pressure on North Korea.
The 25 percent tariff announced Friday hits 1,102 product categories, nearly the total on a list that was put on hold last month for trade talks. Mr. Trump had been expected to make significant trims to that list.
China retaliated in “equal scale” Saturday by both scrapping a recent agreement to reduce its trade surplus with the U.S. by buying more American goods and by raising duties on a $34 billion list of U.S. goods including soybeans, electric cars and whiskey. Most are farm goods or farm-related products, which could hurt Mr. Trump politically in rural states while limiting the damage to China’s economy, as it’s easier to find substitute sources.
Beijing “doesn’t want a trade war” but must “fight back strongly,” a Commerce Ministry statement said Saturday, adding that Chinese regulators will consider a tariff increase on an additional 114 products including medical equipment and energy product.
Mr. Trump described the U.S. moves as more of a business deal, stressing his personal relationship with Chinese president Xi Jinping. “I have a wonderful relationship with President Xi. We’ll all work it out. He understands it’s unfair,” Mr. Trump said on “Fox & Friends.”
Mr. Xi made similar comments Thursday about his personal relationship with Mr. Trump and said he wants to grow the U.S.-China relations.
U.S. Trade Representative Robert E. Lighthizer said the administration was playing defense against what he called the “unprecedented threat” of China’s theft of intellectual property and cyber attacks.
He accused Beijing of “aggressively working to undermine America’s high-tech industries and our economic leadership through unfair trade practices and industrial policies like ’Made in China 2025,’” referring to a 2015 policy to upgrade China’s industry broadly, with an emphasis on high-tech including pharmaceuticals, and to expend China’s influence globally.
Mr. Trump has made import taxes part of his “America First” policies to counter China’s barriers and unfair trade practices. He wants to reduce America’s $375 billion trade deficit with China.
Sen. Marco Rubio, Florida Republican and a leading China hawk, heralded the tariffs as a “theft tax.”
“China is systematically stealing the fruits of American innovation in an attempt to displace us as the most powerful economy and military in the world,” he said. “Hitting China with a ’Theft Tax’ isn’t protectionism, it’s American leadership.”
The tariffs focus on products from China’s industrial sector including aerospace, information and communications technology, robotics, industrial machinery, new materials and automobiles. The list does not include goods commonly purchased by American consumers such as cellular phones or televisions, according to the administration.
The administration did reduce the original list of 1,333 product categories to 888 product categories worth about $34 billion. Another 284 products worth $16 billion were than added to the new list for the total of 1,102 pre-cuts worth about $50 billion.
Jay Timmons, president of the National Association of Manufacturers, said bilateral trade deals are better than trade wars.
“There is no question that China cheats and that its unfair trade practices and intellectual property theft are hurting America’s manufacturing workers,” he said. “To put an end to these threats and redefine the U.S.-China economic relationship, manufacturers are calling for a new path forward: a fair, binding, enforceable bilateral trade agreement.”
Mr. Trump’s tough trade action was applauded by Senate Minority Leader Charles E. Schumer, who typically opposes the president’s every move.
“The president’s actions on China are on the money. China is our real trade enemy, and their theft of intellectual property and their refusal to let our companies compete fairly threatens millions of future American jobs,” said the New York Democrat.
He added, “While we await further details on this trade action, President Trump is right on target.”
Other Democrats who generally support import taxes and cracking down on China still found fault with Mr. Trump.
“While we simply cannot let China’s unfair trade practices go unchecked, this president’s erratic approach to resolving this issue gives me pause,” said Sen. Mark Warner of Virginia.
• S.A. Miller can be reached at smiller@washingtontimes.com.
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