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Trade deficit with China costs 2 mn jobs to US: White House

Trade deficit with China costs 2 mn jobs to US: White House

Despite strong warnings from trade experts, Trump on Thursday signed a memorandum that could impose tariffs on up to 60 billion US dollars of imports from China, the latest unilateral move that poses a threat to global trade.

But the statement also came hours after President Donald Trump announced tariffs on Chinese imports over the "theft" of intellectual property, fuelling fears of a looming trade war.

Stock markets fell sharply on Trump's announcement, with the Dow Jones Industrial Average falling almost 3 per cent.

That measure had not targeted Chinese imports alone. A second list of goods, including wine, apples, ethanol and stainless steel pipe, would be charged 15 per cent, mirroring Trump's tariff hike on aluminum.

The administration's calculation seems to be that China will back down on intellectual property theft if faced with less access to USA markets.

A major reason for Xi's frustration, analysts said, is that Beijing feels it has already made concessions to Trump by tightening sanctions against North Korea over its nuclear programme, and at considerable cost to Chinese companies. "We look forward to the USA and China being able to negotiate a satisfactory arrangement that suits both sides".

"If a trade war were initiated by the United States, China would fight to the end to defend its own legitimate interests with all necessary measures", it added.

"I think this represents a vote of no-confidence in the relevant USA policies and actions", said Chinese Foreign Ministry spokeswoman Hua Chunying.

Alarm over Trump's protectionist leanings mounted earlier this month after he imposed hefty import tariffs on steel and aluminum under Section 232 of the 1962 U.S. Trade Expansion Act, which allows safeguards based on "national security".

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However, Lou also said a trade war is not good for either side.

The Trump administration is focused on the problem of American technology leaking to China.

Trump has famously said he thinks he can win a trade war, but history shows that the last time the United States got into a big one - in the 1930s - it caused a bad economic situation to get worse and other countries to form trading blocs without the United States.

As per USTR, the American US consultation request identifies apparent breaches by China of WTO rules, harming the intellectual property rights of US companies and innovators. There was no explanation of the difference between that figure and Trump's $60 billion.

U.S. President Donald Trump's tariffs are "counterproductive" to the American economy, said Paul Kennedy, a history professor at Yale University.

A U.S. Navy destroyer also carried out a "freedom of navigation" operation on Friday, coming within 12 nautical miles of an artificial island built by China in the South China Sea, U.S. officials told Reuters, a move likely to further anger Beijing.

The US President claims China has for years engaged in unfair trade practices that have hurt US firms. Those products could see a 15% duty, while a 25% tariff could be imposed on US pork and recycled aluminium goods. That said, there is a risk of a mounting cycle of retaliation. In January, a Beijing-based wind turbine company was found guilty in the US of stealing trade secrets, using secretly downloaded source code stolen from a MA company.

Since 2001, when China joined the World Trade Organisation, its economy has grown from United States dollars 1 trillion of GDP to USD 12 trillion; roughly an 800 per cent growth rate. One of them is certainly trade.

Pauline Loong: The trade gap between the two countries has been a constant source of irritation for President Trump and no previous president has acted directly against China in recent years.