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Trump Signs A Memorandum To Impose A Large Tariff On Chinese Goods
Mar 23, 2018

  
U.S. President Trump signed the president’s memorandum on the 22nd and based on the results of the “301 investigation,” it will impose large-scale tariffs on imports from China and limit Chinese companies’ investment in M&A in the United States. Trump told the media before the White House’s signing that the scale of China’s merchandise related to taxation could reach US$60 billion. The Chinese Ministry of Commerce previously stated that China will never sit back and ignore the legitimate rights and interests. It will certainly take all necessary measures to resolutely defend its legitimate rights and interests.

According to the memorandum signed on the same day, the U.S. Trade Representative Office will formulate a specific plan for the collection of tariffs on Chinese goods within 15 days. At the same time, the U.S. Trade Representative Office will also sue China to the World Trade Organization on related issues. In addition, the U.S. Department of the Treasury will introduce a plan within 60 days to restrict Chinese companies from investing in and acquiring U.S. companies. Earlier in the day, White House officials said at a briefing that Chinese goods involved in taxation were valued at about $50 billion.

The U.S. Trade Representative’s Office announced in August last year that it initiated a “301 survey” on China. The so-called "301 investigation" was derived from Article 301 of the "Trade Law of 1974" of the United States. This provision authorizes U.S. trade representatives to initiate investigations into "unreasonable or unfair trade practices" in other countries, and may recommend that U.S. presidents implement unilateral sanctions after investigations are completed, including the withdrawal of trade preferences and the imposition of retaliatory tariffs. This investigation was initiated, investigated, adjudicated, and enforced by the United States itself. It has strong unilateralism.

According to a study recently released by the U.S. Information Technology Innovation Foundation, if the Trump administration imposes a 25% tariff on imports of information and communications technology products from China, this will cause the U.S. economy to lose about $332 billion in the next 10 years.