Washington, Mar 13 US President Donald Trump is now seeking to impose steep tariff on import of a number of Chinese products in retaliation to the alleged theft of intellectual property by China, a media report said Tuesday.
So far, only Mexico and Canada are thought to be exempt from the tariffs, which impose a 25 per cent levy on steel imports entering the country and 10 per cent on aluminium.
Malmstrom, who held talks with US Trade Representative Robert Lighthizer on Saturday, said she had not been given any clear reassurance that the European Union would be exempted.
"China has been asked to develop a plan for the year of a One Billion Dollar reduction in their massive Trade Deficit with the United States", Trump tweeted on March 7.
US President Donald Trump is eying imposing tariffs on $60 billion of Chinese imports, Reuters reports via a White House source. "We don't comment on internal meetings, but no final decisions have been made on content or timing", said a White House official.
Volvo CEO Hakan Samuelsson recently warned his company would cut half the 4,000-member workforce at its SC plant if exporting cars from the U.S. were no longer viable.
The administration also is considering imposing new limits on Chinese investment in the United States, which topped $29 billion past year, according to the Rhodium Group, a New York-based consultancy. I think there are good reasons why both sides will accept, at the end of the day, that we don't need, we don't want, a trade war.
While the tariffs on steel and aluminum, announced last week by Trump, are viewed as relatively insignificant in terms of imports and exports, moves to target China directly risk a direct and harsh response from Beijing.
That would spook stock markets, but Mr Scissors said that the more serious the conflict became, the worse China's position would become, due to the importance of its USA trade surplus.
U.S. business groups, while uneasy about triggering Chinese retaliation, have increasingly pressed Washington to take action on Beijing's industrial policies, such as market access restrictions and the "Made in China 2025" plan, which aims to supplant foreign technologies with domestic ones.
"The European Union, wonderful countries who treat the US very badly on trade, are complaining about the tariffs on Steel & Aluminum".
The EU disputes Trump's line on tariffs and his emphasis on cars, for which the USA tariff, at 2.5%, is lower than the EU's 10%.
"China's biggest worry has always been joint push-back from its major Western trading partners", the diplomat said.
In the U.S., Gary Shapiro, president and CEO of the Consumer Technology Association, which represents more than 2,200 companies, said the tariffs could cost far more American jobs than they would create.
"Senior Trump administration officials had directly approached European leaders at a senior level. You can't cooperate when you're getting whacked around", the person told Reuters.