This Reason Trump Wear Import Tariffs for Chinese Technology Products
After launching import tariffs for steel and aluminum into the United States, Donald Trump, the president of the superpower, is back in action. This time he is targeting products from China, especially those related to technology.
The move comes after the US government conducted an investigation into alleged theft of US intellectual property by Chinese companies. .
The result, concluded that China often "forced" US companies to give up their intellectual property, through government maneuvers or terms of cooperation with Chinese companies, if they want to enter the market of the Bamboo Curtain country.
This is allegedly contributing to the imbalance of the balance of trade between the two countries, with a deficit of hundreds of billions of US dollars on the American side, beyond the loss of intellectual property taken through illegal means such as hacking
"We have a very large intellectual property theft problem," Trump said, as summed up by KompasTekno of CNN, Saturday (24/3/2018).
"(Tariff) will make us a much stronger and richer country," he continued.
The additional 25 percent import tariff is expected to affect the import of goods worth 60 billion US dollars from China. Its types reach 1,300s of goods, although precisely not yet known what.
Because it concerns intellectual property and technology, it is estimated that the most affected will be import of imported products of categories of computer peripheral, communications, industrial machinery such as factory robots and space.
In addition to import tariffs, Trump's government will also tighten Chinese investment in high-tech projects in the US. Chinese companies will be banned from investing in certain sectors that enable the acquisition of technology.
Trade war, prices rise
Trump action mengumbar import tariffs feared would trigger a trade war between countries that lead to harm to all parties. The symptoms are already beginning to appear clear.
On Friday last week, China just replied tariffs on steel and aluminum imports by imposing an additional import tariff of 15 percent for 128 types of products imported from the US, for a total of 3 millillions US dollars.
Most recently, China this week announced plans to impose a 25 percent tax on recycled pork and aluminum products imported from the United States.
The import tariff that Trump charges on these technology products is different from before because it specifically targets China, not other countries as well as imports of steel and aluminum.
On the other hand, the Chinese government through the Ministry of Commerce reminded the US not to take any action that jeopardizes the bilateral trade relations between the two countries. But, it added that China is not afraid if the trade war with the US really surge.
"We are confident in our ability to face any challenge, we urge the US to stop," said the Ministry of Commerce of China.
For the technology sector, a trade war between China and the US will boost the price of goods at the consumer level. It is understood that many electronic and technological devices related to China, whether using Panda State technology or produced there.
Internet giants like Facebook and Google are also threatened with a severe headache because many rely on Chinese companies to supply components for servers and data centers.
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