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Donald Trump to hit US$50 billion of Chinese imports with 25 per cent tariffs and restrict investment in US hi-tech industries

The move, which aims to halt the transfer of ‘industrially significant’ technologies to China, drew a rebuke from Beijing over the ‘contradiction’ of the consensus reached in Washington

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US President Donald Trump continues to ratchet up pressure on Beijing even as the two governments conduct high-level negotiations to avert a trade war. Photo: Bloomberg

US President Donald Trump said on Tuesday that he would place punitive tariffs on US$50 billion of Chinese imports and restrict investment in the American hi-tech industry, drawing a rebuke from Beijing.

The US “will impose a 25 per cent tariff on $50 billion of goods imported from China containing industrially significant technology, including those related to ‘Made in China 2025’,” the White House said, referring to the Chinese government’s policy to support domestic development of strategic technologies.

“To protect our national security, the United States will implement specific investment restrictions and enhanced export controls for Chinese persons and entities related to the acquisition of industrially significant technology,” in addition to the tariffs, the announcement added.

The list of targeted goods will be made public on June 15, and investment restrictions and export controls are to be announced on June 30, the White House said. The tariffs, to be levied under Section 301 of the Trade Act of 1974, and restrictions will be imposed “shortly” after the announcement.

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US Treasury Secretary Steven Mnuchin said on May 20 that the Trump administration had put its punitive tariff plan ‘on hold while we try to execute the framework’ agreement on reducing China’s trade surplus with the US. Photo: Bloomberg
US Treasury Secretary Steven Mnuchin said on May 20 that the Trump administration had put its punitive tariff plan ‘on hold while we try to execute the framework’ agreement on reducing China’s trade surplus with the US. Photo: Bloomberg

The actions are part of “multiple steps to protect domestic technology and intellectual property from certain discriminatory and burdensome trade practices by China”, the White House said.

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China’s commerce ministry responded immediately, saying the move “clearly contradicts the consensus reached by China and the US in Washington recently".

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