President Donald Trump is considering broad tariffs on imports from China and an announcement could come as soon as this week. Industry groups and some lawmakers are scrambling to prevent a new front in a potential trade war that could reverberate across the U.S. economy.
Early indications from the White House have officials braced for tariffs across a wide variety of consumer goods, from apparel to electronics, and even on imported parts for products made in the U.S. The size and scope remain under debate, but the U.S. Chamber of Commerce is warning that annual tariffs of as much as USD60 billion on Chinese goods would be “devastating.”
Trump’s focus on China could be even more consequential, both at home and abroad, than the recently announced penalty tariffs on steel and aluminum. And amid the staff turmoil at the White House, it’s being read as a sign of rising influence for the administration’s populist economic aides, led by Commerce Secretary Wilbur Ross and adviser Peter Navarro.
Even Larry Kudlow — an avowed free trader tapped to replace Gary Cohn as director of the White House National Economic Council — has said that China deserves a “tough response” from the United States and its friends.
Trade experts and economists say the tariffs could lead to rising prices for U.S. consumers and businesses without accomplishing one of the president’s stated goals: reducing last year’s trade imbalance of $566 billion.
China, the largest source of the trade imbalance, would likely respond to any tariffs by retaliating with higher import taxes on U.S. goods, among other possible restrictions. MDT/AP
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