The White House announced Thursday that they were going to enact steep tariffs and other trade penalties on Chinese imports in an attempt to lower the trade deficit and contain China’s “economic aggression.”
President Trump assured the public Thursday that the trade deficit the United States has with China is completely “out of control,” and that there is a “tremendous intellectual property theft situation going on.”
While it’s unclear to what extent these tariffs will go, the White House indicated that our trade with China would go down by the tens of billions of dollars.
The president also told reporters that this is only a “fraction” of what he has planned concerning this problem, saying that he has asked China to take steps to reduce the U.S. trade deficit by $100 billion dollars.
“We are losing to China,” Robert Lighthizer, a U.S. trade representative, announced to lawmakers Wednesday. “We have a very serious problem of losing our intellectual property.”
Wilber Ross, the Secretary of Commerce, concludes that intellectual property theft and technology transfers costs the United States hundreds of billions of dollars every year, and China is considered to be the primary culprit.
The Chinese government has retaliated in light of Trump’s action, saying they “resolutely oppose this type of unilateral and protectionist action by the U.S.”
America’s trade deficit with China grew by $375 billion in 2017, and by $35 billion in January of 2018, according to the United States Census Bureau.