The Trump administration is gearing up to potentially impose $30 billion in tariffs on a "wide range" of Chinese products in retaliation for alleged intellectual property rights violations, as part of a broader strategy to reduce the 12-figure trade deficit with the Asian nation, according to a March 15 Wall Street Journal report.
Citing a White House official and people briefed on the administration's plan, the Journal reported that the proposed U.S. tariff package stems from the administration's effort to reduce the $375.2 billion U.S. goods trade deficit with China by $100 billion.
The tariffs, reportedly expected to be announced over the next two weeks, stem from the administration's finding that China has violated U.S. intellectual property laws by requiring U.S. companies operating in the Asian nation to hand over their technology to Beijing as a cost of doing business there.
The administration is also reportedly considering filing a case against China at the World Trade Organization, according to the Journal, on the grounds of violations of trade rules. This could have major implications for consumer products producers and apparel and retail brands, which ship billions of dollars of merchandise annually to the U.S. from China.
A U.S. Commerce Department spokesman declined a request for comment from S&P Global Market Intelligence and referred comment to the White House and the Office of the U.S. Trade Representative, or USTR, which are taking the lead on the case. Neither the White House nor the USTR returned requests for comment.
The report did not specify which goods might be targeted, but the Journal said shoes could be on the list, according to a White House official.
The USTR launched a Section 301 investigation in August 2017 into Chinese trade practices, alleging that the Chinese government uses joint venture requirements and foreign equity limitations among other "opaque" practices to secure American intellectual property.
In its an annual report to Congress, the U.S. trade agency reiterated that China forces U.S. companies doing business in the country to hand over intellectual property and technology rights, economic policies it says benefit Chinese industries but harm and impede American companies.
President Donald Trump recently tweeted about the U.S. trade deficit with China.
"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 said in a March 7 tweet. "Our relationship with China has been a very good one, and we look forward to seeing what ideas they come back with. We must act soon!"
A White House spokesperson later told media outlets that Trump meant $100 billion rather than $1 billion.
Other retaliatory actions the U.S. is weighing, according to the Journal report, include limits on Chinese student visas and similar restrictions on Chinese firms doing business in the U.S.
