The United States will announce details of the export control mechanism later today and the final tariff list expected to be published by June 15.
In a stern warning to China, the United States made it lucidly clear, it will hold the threat of imposing tariffs on Chinese exports to the U.S. worth $50 billion unless and until Beijing addresses the theft of U.S. intellectual property.
Furthermore, the U.S. will also go ahead with its planned restrictions on Chinese investment in the country as well as impose export control norms on trade with China, said the White House in a statement.
Details of the export control mechanisms as well as restrictions on Chinese investment in the U.S. will be announced by June 30. The final tariff list will be published by June 15.
Earlier, the U.S. had already published a list of potential tariff targets and this includes intermediate goods used by companies to make products, as well as consumer goods including television sets.
Beijing’s reaction to the announcement was surprisingly harsh saying it was surprised by the announcement and would defend its interests.
Earlier this month, the U.S. and China had agreed to review measures to reduce China’s massive trade surplus with the U.S. The move had appeared to reduce the risk of a trade war between the duo.
However, that deal was separate and was not connected to the U.S. investigation of China’s alleged theft of U.S. intellectual property.
Washington wants Beijing to shrink its trade surplus by $200 billion within two years.
Economists estimate that U.S. exports could rise “by up to $90 billion over a period of years”.