Donald Trump could be about to spark another trade war, this time with China, as the US President is poised to announce an estimated $50bn of tariffs over intellectual property violations stemming from the country.
Bloomberg reports that the US will target around 100 different products, and the value of the tariffs is based on the economic damage caused by intellectual property theft.
“Tomorrow the president will announce the actions he has decided to take based on USTR’s 301 investigation into China’s state-led, market-distorting efforts to force, pressure, and steal U.S. technologies and intellectual property,” White House official Raj Shah told the site.
The move follows more general steel and aluminium tariffs on trading partners except Mexico and Canada. The EU is still seeking an exemption on the basis that it is an ally and security partner, as Trump has claimed the measure is based on security fears. However the businessman-turned-world leader has repeatedly complained about the impact that Germany has on the US’ car industry.
China has already hit back at the proposed measures, claiming it would be “detrimental to both sides”.
“If Trump really signs the order, that is a declaration of trade war with China,” said Wei Jianguo, former vice commerce minister and now an executive deputy director of the China Center for International Economic Exchanges, a government-linked think tank.
“China is not afraid, nor will it dodge a trade war,” Wei said. “We have plenty of measures to fight back, in areas of automobile imports, soybean, aircraft and chips. On the other hand, Trump should know that this is a very bad idea, and there will be no winner, and there will be no good outcome for both nations.”