Starting Friday, the U.S. will tax 818 Chinese products, worth $34 billion a year, from the original list. It won’t target the 284 additions, worth $16 billion, until it gathers further public comments.
China has warned that it won’t yield to Trump’s pressure. If the U.S. starts taxing Chinese imports Friday, Beijing plans to impose 25 percent tariffs on 545 U.S. products worth $34 billion a year — from soybeans and lobsters to sport-utility vehicles and whiskey. China is considering a follow-up tariff on an additional 114 U.S. goods, worth $16 billion a year.
WHAT HAPPENED TO THE INVESTMENT RESTRICTIONS?The administration settled last week on a less draconian plan: It would back an effort in Congress to strengthen reviews of foreign investment under the existing Committee on Foreign Investment in the United States, or CFIUS. This committee, led by the Treasury secretary, considers whether a foreign investment poses a risk to America’s national security. These reviews apply to all countries — not just China — and are conducted on a case-by-case basis.
What’s more, the U.S. tariffs on imported Chinese products could end up hurting American manufacturers. The Peterson Institute for International Economics calculates that 85 percent of the Chinese products to be hit by the initial Trump tariffs are machinery and components used in finished goods made in the United States. A result is that U.S. manufacturers will have to pay more for parts and equipment, thereby putting them at a competitive disadvantage to foreign rivals.
Yes. Trump is battling in just about every direction. He has slapped tariffs on imported steel and aluminum — action that has drawn retaliatory tariffs from U.S. allies like Canada, Mexico and the European Union. The president is also threatening to impose tariffs on imported vehicles and auto parts on the grounds that they pose a threat to America’s national security.
Maybe. For a time, it looked as though peace might be at hand. In May, Treasury Secretary Steven Mnuchin declared the trade war “on hold.” The Trump administration suspended its tariffs after Beijing agreed to increase its purchases of U.S. goods, especially in agriculture and energy. The idea was that China’s additional purchases would shrink its trade surplus with the United States. Yet the cease-fire was short-lived. Critics dismissed Beijing’s commitments as vague, and Trump decided to proceed with the tariffs after all.