Trump’s next Tariff Target: China

According to Wall Street Journal, the Trump administration is putting trade measures against China, including tariffs on at least an annual $30 Billion of Chinese imports, investment restrictions and even visa limits, to pressure Beijing to stop requiring U.S. companies to transfer technology to Chinese firms.

More specifically, the measures being discussed and considered include: tariffs of at least an annual $30 billion on a wide range of Chinese products; strengthened restrictions on Chinese investment into the U.S.; and limits on visas to Chinese students, academics and executives to visit or study in the U.S.

These restrictions were discussed in a White House meeting last week that included officials from the Commerce Department, Defense Department, the Council of Economic Adviser and the U.S. Trade Representative’s office, the White House official said. However, according to the White House spokeswoman, there is no final decisions have been made yet.

The package of measures is expected to be officially announced in the next week or two, and is considered as the next part of the administration trade policy which aimed at reducing the huge U.S. trade deficit. President Donald Trump has said that he wants China to come up with a plan to slash its $375 billion merchandise trade surplus with the U.S. by $100 billion.

Taking actions on China is widely supported by U.S. companies, which have been complaining that Beijing unfairly subsidizes its state-owned firms to develop technology and hinders U.S. companies doing business in China. But many other companies also fear that imposing tariffs would backfire by inviting retaliation from the Chinese and would increase costs to U.S. businesses.

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