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By APD Writer Xiao Ma
Fulfilling his campaign rhetoric, U.S. President Donald Trump on Thursday signed a directive to impose up to 60 billion dollars’ worth of tariffs on Chinese imports, endangering global trade order and putting the economies of the United States and the world in jeopardy.
In a memorandum, Trump told U.S. Trade Representative Robert Lighthizer to publish a list of proposed Chinese goods that could be subject to higher tariff in 15 days, and gave the Treasury Department 60 days to draw up a plan to impose restrictions on Chinese investments in the United States.
The move, claimed by the White House as the result of a Section 301 investigation, which targeted alleged intellectual property thefts conducted by China in the past, was widely believed to be more of an effort to impress Trump’s base voters with a tough image on trade.
“The word that I want to use is "reciprocal," Trump stressed repeatedly during the signing ceremony of the referendum. He complained that China charged higher tariffs on U.S. goods, while the United States charged less, feeding a narrative that the move may lure more businesses back to the United States.
“We're doing things for this country that should have been done for many, many years.
We've had this abuse by many other countries and groups of countries that were put together in order to take advantage of the United States,” Trump said, surrounded by a group of trade hawks including Lighthizer and Secretary of Commerce Wilbur Ross.
Under the surface, the substance was less important for Trump, who has asked his advisors vaguely for “a large number”.
U.S. media reported an initial proposal of about 30 billion in tariff wasn’t enough for Trump, and was later adjusted to 50 billion, but Trump again bumped the number up to 60 billions in his remarks before signing the document.
While the tough gesture may earn a few nods in Trump’s mostly rural voter base, the market reacted with overwhelming disapproval, as the Dow closed more than 700 points lower.
Businesses, experts and politicians are joining in unison to voice concern over Trump’s unilateral trade actions, which they say will ultimately hurt U.S. consumers.
"Simply put, tariffs are damaging taxes on American consumers," Thomas Donohue, President and CEO of U.S. Chamber of Commerce, said.
"Tariffs of $30 billion a year would wipe out over a third of the savings American families received from the doubling of the standard deduction in tax reform. If the tariffs reach $60 billion, which has been rumored, the impact would be even more devastating," Donohue said.
As U.S. consumers fear a widespread price hike, some U.S. businesses will also likely feel the backlash to Trump’s plan.
China has already announced a counteraction by slapping 30 billion dollars of tariff on U.S. exports, covering more than 120 U.S. goods, such as pork, fruits, nuts, and wine.
“For every one American worker who will be pleased at Mr. Trump's announcement of tariffs, there will be ten American workers whose own product in his or her factory will be affected by the cost of the tariff,” Yale history professor Paul Kennedy said.
Xiao Ma, a Washington-based reporter focusing on U.S. domestic politics
(ASIA PACIFIC DAILY)
