US President Donald Trump’s administration on Wednesday announced the imposition of 25 per cent tariffs on imports of 279 items from China, effective August 23. The second tranche of such tariffs will be imposed on goods amounting to USD 16 billion. The US had earlier imposed tariffs on USD 34 billion on July 6.
According to the US Trade Representative (USTR), the imposition of this tariff is a part of the US' response to China's "unfair trade practices" related to the forced transfer of American technology and intellectual property.
Donald Trump, after coming to power has taken steps to address the issue of massive balance of trade with China and to the alleged Chinese theft of intellectual property.
In March 2018, the USTR had released the findings of its "exhaustive" Section 301 investigation, that found China's acts, policies and practices related to technology transfer, intellectual property, and innovation are "unreasonable and discriminatory and burden US commerce".
Through the investigation, it was revealed that China uses joint venture requirements, foreign investment restrictions, and administrative review and licensing processes to require or pressure technology transfer from US companies and it deprives US companies of the ability to set market-based terms in licensing and other technology-related negotiations.
It was also found that China directs and unfairly facilitates the systematic investment in, and acquisition of, US companies and assets to generate large-scale technology transfer.
China conducts and supports cyber intrusions into US commercial computer networks to gain unauthorized access to commercially valuable business information, the USTR claimed.
There seems to be no solution to the trade war between the world’s two biggest economies, as the Trump administration prepares for tariffs of up to 25 per cent on an additional USD 200 billion in Chinese products.