There may be a trade war in the horizon as President Trump plans on increase tariffs for certain overseas imports.
Here are seven things you should know about the looming change to international trading:
- A White House official said that the POTUS will announce tariffs on Chinese imports with the goal of reducing theft of U.S. technology, potentially causing retaliation from Beijing, increasing fears of a global trade war.
- U.S. Trade Representative Robert Lighthizer did not discuss the size or scope of the tariffs.
- These would be imposed on China’s high-technology sector and it could also include restrictions on Chinese investments stateside. The apparel industry may also be hit.
- “Tomorrow the president will announce the actions he has decided to take based on USTR’s 301 investigation into China’s state-led, market-distorting efforts to force, pressure, and steal U.S. technologies and intellectual property,” Lighthizer said.
- The POTUS’ decision stems from an investigation by the U.S. under Section 301 of the 1974 Trade Act, which discovered theft and coercion of U.S. companies from Chinese ones designed to steal intellectual property and technology knowledge.
- The official told the House of Representatives Ways and Means Committee that the move will help reduce the impact of any tariffs on U.S. consumers.
- The POTUS was slated to sign a presidential memorandum “targeting China’s economic aggression” at 12:30 p.m. on Thursday, according to Lighthizer.
Will Trump’s decision start a trade war?