The United States to Issue a New Round of Tariffs Against Imported Goods From China
This past Sunday May 5, 2019 President Donald Trump announced on Twitter the USA will increase the tariff on certain imported goods from China from 10% to 25%, as well as implementing a 25% tariff rate on currently undisclosed imports (1). This new wave of tariffs is the latest of those enacted by the United States against China, dating back to January 22, 2018 when the US imposed tariffs against imported washing machines and solar panels (2). The tariffs were initiated after an investigation, requested by President Trump, into China’s trade practices, believed to “be harming American intellectual property rights, innovation, or technology development” (3), ultimately revealed “that, among other acts, policies, and practices, China uses discriminatory licensing requirements to transfer technologies from U.S. companies to Chinese companies” (4). The investigation and retaliatory tariffs were conducted as authorized by 19 U.S Code 2411 (Section 301 of the Trade Act of 1974) stating that if “an act, policy, or practice of a foreign county… is unjustifiable and burdens or restricts United States commerce… the President regarding any such action… shall take all other appropriate and feasible action within [his] power… to obtain the elimination of such act, policy, or practice” (5).