According to an announcement made by President Donald Trump, as of March 2018, China is going to be financially burdened by stiff tariffs. The tariffs being imposed on China are due to the unfair harmful use of United States technology acquisitions. According to the American government, the theft of American Intellectual Property by Chinese manufacturers is costing the U.S. between $225 million USD and $600 billion USD.
President Trump Imposing Tariffs Equaling $50 Billion USD on Chinese Goods
The tariffs quoted by President Trump will be placed against imports from China and will equal $50 billion USD. The alleged intellectual property infringements include a variety of goods, including theft of trade secrets, counterfeiting popular product brands, and pressuring different businesses to provide access to their technology.
Intellectual property violations have been a major complaint of United States business owners for a long time. Because of this, many countries have avoided working with Chinese companies out of fear of their intellectual property rights being violated.
President Trump Is Fulfilling His Promise
In March, President Trump made an announcement that he would impose a 25% tariff on steel imports and a 10% tariff on aluminum imports. Trump excluded Mexico and Canada from these tariffs in an attempt to build a stronger alliance. Over time, this decision could have proven to be valuable, as Trump expects to have new talks with about North American Free Trade Agreement. However, in a more recent announcement, President Trump announced that he may impose the same sanctions for U.S. allies.
Could These Tariffs Start a Trade War?
Current trade partners with the U.S. are shocked and hesitant to do business with the country now that new, stiffer tariffs are being put in place. Many experts are speaking out about concepts they were keeping quiet about, and expressing their worry about potential repercussions from China, and other trade partners. Many worry about slowed economic growth and a decrease in bond and stock markets. All together, they are afraid that President Trump may have caused the start of a global trade war.
About Kamil Idris
Professor Kamil Idris is a Sudanese national. He is also a former diplomat. He has an extensive education and served as the director for the World Intellectual Property Organization. His he writes for numerous publications, primarily on Intellectual Property Law. He is also the president of the International Court of Arbitration and Mediation (ICAM).