US to raise tariffs, accuses China of backtracking on commitments
US President Donald Trump tweeted on Sunday, May 5, that he would raise tariffs on Chinese goods, prompted by China’s alleged backtracking on commitments it made during trade talks.
Trump said that he would raise tariffs on $200 billion worth of Chinese goods to 25% from 10% by the end of next week, and would “soon” target all remaining Chinese imports with tariffs.
“The trade deal with China continues, but too slowly, as they attempt to renegotiate. No!” added Trump.
Robert Lighthizer, US Trade Representative (USTR), told reporters on Monday: “Over the course of the last week or so we have seen an erosion in commitments by China. That in our view is unacceptable.”
However, he said a Chinese delegation was still expected in Washington on Thursday, May 9 for a further round of talks.
“But for now ... come Friday there will be tariffs in place,” Lighthizer said.
Last year, Trump imposed duties on billions of dollars worth of Chinese goods, as part of a dispute between the US and China. China retaliated with its own set of tariffs.
Trade talks began in December 2018 amid controversy in the US over China’s alleged strategy of promoting the theft of IP, including trade secrets, from American companies.
China has denied the allegations and, in recent months, announced measures aimed at cracking down on IP offences in the country.
In April, the Chinese government released further updates on the new Foreign Investment Law. Chinese legislators had approved the law in March.
Once implemented, it will formally ban the practice of forcing foreign companies to hand over technology and IP in exchange for access to the Chinese market.
China has remained on this year’s USTR Notorious Markets List as a “priority” country which has failed to adequately protect IP.
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