Trump escalates trade tensions with China

[FarCenter]

President Donald Trump escalated his trade war with China on Tuesday by threatening to slap new tariffs on $50 billion in imported goods ranging from bakery ovens to ball bearings.

The action is the latest step in Trump’s trade offensive that aims to punish Beijing for pursuing policies accused of bolstering its own technological and economic development at the expense of U.S. companies. The tariffs are likely to invite even more retaliation from China, which has already hit back against separate U.S. trade restrictions on steel and aluminum by hiking tariffs on $3 billion worth of U.S. imports of pork, scrap aluminum, wine and other agricultural products.

On March 22, Trump directed his administration to take action after a monthslong investigation into allegations that Beijing is forcing U.S. companies to transfer valuable technology as a condition of doing business there. The proposed list published Tuesday includes 1,300 products that will be subject to new tariffs after a public comment period.

The value of the product list would equal to the annual damage the Trump administration says U.S. companies suffer as a result of China’s technology transfer policies. Each product on the list will be hit with a 25 percent tariff, with the aim of targeting manufacturing sectors China is accused of bolstering through state-backed companies and programs.

https://www.politico.com/story/2018/04/03/trump-china-tariffs-technology-454222

The 58 page pdf of 1300 products.

https://ustr.gov/sites/default/files/files/Press/Releases/301FRN.pdf

[MineralMan]

1. OK, that's just about everything,

from most generic medications and electronics of all types to hand and power tools. It's tariffs on most consumer and industrial goods and materials. This would start a massive trade was and trigger massive retail price increases the would affect everyone directly.

WTF?

[FarCenter]

2. So much for buying cheap tools at Harbor Freight!

It's going to raise a lot of costs for industry, as well as some for consumers.

And I can see no way that this protects the intellectual property of the US or our high tech industries, when many of the products seem pretty low tech. E.g retreaded tires, surgical sutures, insulin, concrete mixers, chain sprockets, soldering irons, cassette players, syringes, catheters, etc.

[MineralMan]

3. Yes. Many genetic meds are made only

in China. That's going to raise costs for almost everyone. Small gasoline engines, too. Most are now made in China, including Briggs and Stratton. Need a lawnmower. 25% more costly, instantly.