Trade tensions have taken another negative turn, with the U.S. demanding that China come up with a specific plan to stop allegedly stealing technology. Until Beijing does so, the U.S. will not resume trade negotiations, according to a report Thursday in The Wall Street Journal.
Connected and autonomous vehicles rely on IT hardware and software, an area where the United States has a competitive advantage globally. Congress and the administration should help U.S. industry press that advantage not with auto tariffs, but with more robust innovation policies.
U.S. tariffs on around $200 billion in Chinese imports are set to jump to 25% on Jan. 1, up from the 10% implemented last month. That works out to around $30 billion in new taxes to be paid by U.S. importers, many of whom will pass at least some of the costs on to U.S. consumers.
President Trump on Monday hailed the major revisions he was able to extract from Canada and Mexico to the 25-year-old North American trade agreement, as business executives, labor leaders, and lawmakers began poring over details. Speaking at a Rose Garden news conference, Trump called the pact that would replace the North American Free Trade Agreement “the most important trade deal we’ve ever made by far.”
U.S. tariffs that hit some $200 billion worth of Chinese products on Monday spare many high-profile consumer technology items such as “smart” watches and speakers, but the less flashy home modems, routers and internet gateways that make them work weren’t so lucky.
China could target U.S. tech stocks as part of the ongoing trade war, according to the top equity strategist at Goldman Sachs. Peter Oppenheimer told CNBC’s “Street Signs” on Tuesday that China may impose tariffs on industry components that could have an effect on supply chains.
Many of the trade issues on which U.S. President Donald Trump is now focusing have been concerns for numerous White House administrations, according to Michael Froman, who served as U.S. Trade Representative under former President Barack Obama.
Six states filed an amicus brief in support of a federal lawsuit that accuses Washington Gov. Jay Inslee’s administration of interfering with foreign and interstate trade by denying permits for the controversial project. Attorneys general in Montana, Wyoming, South Dakota, Utah, Kansas and Nebraska argued in the brief that Inslee and state regulators are holding coal-producing states hostage.
Faced with plunging U.S. orders, surgical glove maker Ren Jiding is hunting for new markets amid Chinese government calls to reduce reliance on the United States. But none can absorb the 60 percent of his sales that went to American customers last year.
At the heart of the United States’ Generalized System of Preferences (GSP) lies a recognition that free trade supports economic growth in developing countries, and such trade can be mutually beneficial. However, with their duty-free access to U.S. markets comes the responsibility of abiding by free and fair trade practices.