Federal policy on China, 2017-2018

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President Donald Trump's main priorities in dealing with China were on issues of trade and North Korea. Trump criticized China for what he described as the country's unfair trade practices. However, he declined to label China a currency manipulator, something he promised to do as a presidential candidate. In April 2017, he said that China had stopped manipulating its currency and was helping the U.S. to enforce sanctions against North Korea for continuing to pursue a nuclear weapons program.[1][2][3]

On July 10, 2018, the Office of the United States Trade Representative (USTR) called for a 10 percent tariff on $200 billion worth of goods from China to encourage China to change its commercial trade practices. On June 15, 2018, the Trump administration announced a 25 percent tariff on approximately $50 billion worth of Chinese goods. Chinese officials responded to this action by imposing duties on U.S. goods, which prompted the administration to impose the proposed tariffs on imports. Prior to announcing the tariffs, Trump said that he had not taken tougher actions to reduce the U.S.' trade deficit with China because President Xi Jinping had been working with the U.S. to enforce economic sanctions against North Korea. Trump said, “China’s been helping us a lot, so you can veer a little bit differently.” He added that he hoped China would do more to contain North Korea.[4]

On September 17, 2018, Trump imposed more tariffs on nearly $200 billion of Chinese goods. On December 2, 2018, Trump agreed to delay the implementation of increased tariffs on the product while trade negotiations with China continued.

This page tracked major events and policy positions of the Trump administration and the 115th United States Congress on China from 2017 and 2018. This page was updated through 2018. Think something is missing? Please email us at [email protected].

Click on the timeline below to learn more about each headline.

December 2, 2018: Trump agrees to hold off on tariffs while trade negotiations with China continue

On December 2, 2018, President Donald Trump agreed to delay the implementation of increased tariffs on $200 billion worth of goods while trade negotiations with China continued. Tariffs had been scheduled to rise from 10 percent to 25 percent on January 1, 2019. The announcement came after Trump and Chinese President Xi Jinping met after the G-20 summit.[5]

Some elements of the agreement struck by Trump and Xi appear below.[5]

  • Xi agreed to designate Fentanyl as a controlled substance. Individuals selling Fentanyl to the United States will be subject to China’s maximum penalty under the law.
  • Trump agreed to leave the tariffs on $200 billion worth of goods at 10 percent, instead of increasing tariffs to 25 percent.
  • Xi agreed to purchase more agricultural, energy, industrial, and other product from the U.S.
  • Trump and Xi agreed to “begin negotiations on structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture,” according to a White House press release. These negotiations were scheduled to end in 90 days.
  • Trump and Xi agreed to work towards a nuclear-free Korean Peninsula.

September 17, 2018: Trump announces new tariffs on Chinese goods

On September 17, 2018, President Donald Trump announced that his administration would impose tariffs on nearly $200 billion of goods imported from China. A 10 percent tariff took effect on September 24, 2018. It was scheduled to increase to 25 percent on January 1, 2019, though the deadline had been pushed back by Trump as of February 2019. Trump also warned China against imposing retaliatory tariffs on U.S. goods by saying that his administration would impose tariffs on $267 billion of additional Chinese imports. In a statement, Trump said that the tariffs were a response to what he called China’s “unfair policies and practices relating to United States technology and intellectual property” and its unwillingness to change its policies.[6][7]

Nearly half of Chinese imports to the U.S. were subjected to tariffs, totaling $505 billion, according to The Wall Street Journal. Fish, vegetables, fruits, nuts, grains, metals, pet products, hair care products, luggage, gas grills, household appliances, and furniture were some of the goods that were subjected to the tariffs.[8][9]

In response, China said that it would impose new tariffs on $60 billion of U.S. goods beginning on September 24, 2018.[10]

House Ways and Means Committee Chairman Kevin Brady (R-Texas) expressed concern about how the tariffs could impact Americans. He said, “Any time tariffs are imposed I worry that Americans will be forced to pay extra costs — in this case on nearly half of U.S. imports from China. I continue to emphasize that the ultimate means to create an effective outcome is for President Trump and President Xi to engage constructively to develop a long-term and profound solution that levels the playing field for American manufacturers, farmers and workers.”[11]

Commerce Secretary Wilbur Ross said that Americans would not notice the impact of the tariffs when purchasing Chinese imports. He said, “If you have a 10 percent tariff on another $200 billion, that’s $20 billion a year. Because it’s spread over thousands and thousands of products, nobody’s going to actually notice it at the end of the day.”[12]

July 10, 2018: Trump administration releases list of tariffs on $200 billion worth of Chinese goods

On July 10, 2018, the Office of the United States Trade Representative (USTR) called for a 10 percent tariff on $200 billion worth of goods from China. U.S. Trade Representative Robert Lighthizer said, "For over a year, the Trump Administration has patiently urged China to stop its unfair practices, open its market, and engage in true market competition. We have been very clear and detailed regarding the specific changes China should undertake. Unfortunately, China has not changed its behavior – behavior that puts the future of the U.S. economy at risk. Rather than address our legitimate concerns, China has begun to retaliate against U.S. products. There is no justification for such action." A complete list of goods subject to the proposed tariff can be accessed here.[13][14][15]

USTR laid out the following schedule for public hearings on the proposed tariffs:[13]

  • July 27, 2018: Deadline for filing requests to appear, pre-hearing submissions, and a summary of expected testimony at the public hearing
  • August 17, 2018: Deadline for filing written comments
  • August 20-23, 2018: Public hearing in the main hearing room of the U.S. International Trade Commission
  • August 30, 2018: Deadline for filing post-hearing rebuttal comments

On August 3, 2018, Chinese officials announced that the nation would impose retaliatory tariffs on approximately $60 billion of United States imports. The list of items subject to the tariffs included 5,207 goods, with tariff rates ranging from 5 percent for a variety of chemical goods to 25 percent for agricultural products such as honey, grated ginger, almonds, maple syrup, and liquified natural gas. In a statement, Chinese officials said, "The United States has deviated from the consensus of the two sides on several occasions, unilaterally escalating trade frictions, seriously violating the rules of the World Trade Organization, undermining the global industrial chain and the free trade system, substantially harming the interests of our country and the people, and will also include the United States."[16]

On September 7, 2018, Trump said that he would be willing to impose tariffs on an additional $267 billion in Chinese goods: "I hate to do this, but behind [the previously announced $200 billion in tariffs] this is another $267 billion ready to go on short notice if I want."[17]

June 15, 2018: Trump administration releases list of tariffs on $50 billion worth of Chinese goods

Citing “China’s theft of intellectual property and technology and its other unfair trade practices,” the Trump administration announced that it would place a 25 percent tariff on $50 billion worth of goods from China beginning on July 6, 2018.[18]

In a statement announcing the tariffs, on June 15, 2018, President Donald Trump said, "My great friendship with President Xi of China and our country’s relationship with China are both very important to me. Trade between our nations, however, has been very unfair, for a very long time. This situation is no longer sustainable. China has, for example, long been engaging in several unfair practices related to the acquisition of American intellectual property and technology.” Trump also said that the U.S. would impose additional sanctions if China placed retaliatory tariffs on U.S. goods and services.[18]

The Office of the United States Trade Representative (USTR) released a list of 1,102 products that are “from industrial sectors that contribute to or benefit from the 'Made in China 2025' industrial policy, which include industries such as aerospace, information and communications technology, robotics, industrial machinery, new materials, and automobiles” that will be subject to a 25 percent tariff. It did not include cellular telephones or televisions. On July 6, 2018, the first round of tariffs on 818 products went into effect.[19]

In a statement regarding the administration’s decision to impose tariffs on China, U.S. Trade Representative Robert Lighthizer said, “We must take strong defensive actions to protect America’s leadership in technology and innovation against the unprecedented threat posed by China’s theft of our intellectual property, the forced transfer of American technology, and its cyber attacks on our computer networks. China’s government is aggressively working to undermine America’s high-tech industries and our economic leadership through unfair trade practices and industrial policies like ‘Made in China 2025.’ Technology and innovation are America’s greatest economic assets and President Trump rightfully recognizes that if we want our country to have a prosperous future, we must take a stand now to uphold fair trade and protect American competitiveness.”[19]

In response, China's Commerce Ministry accused the Trump administration of “provoking a trade war.” The statement said, "This move is not only damaging bilateral interests but also undermining the world trade order.” China also said it that would "immediately introduce taxation measures of the same scale and strength."[20]

Senate Finance Committee Chairman Orrin Hatch (R-Utah) opposed the decision to impose tariffs, saying, “Tariffs will harm American and Chinese businesses and consumers, and will put economic growth in both countries at risk. Ill-conceived trade actions that weaken the American economy, alienate allies, and invite retaliation against American businesses, farmers and ranchers, undermine our nation’s ability to successfully confront China’s unfair trade policies."[21]

Senate Minority Leader Chuck Schumer (D-N.Y.) praised the decision to impose tariffs, saying, "The president’s actions on China are on the money. China is our real trade enemy, and their theft of intellectual property and their refusal to let our companies compete fairly threatens millions of future American jobs."[20]

June 7, 2018: Commerce Department announces deal with ZTE

On June 7, 2018, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) announced that it had reached a deal to reverse a ban on Chinese telecommunications company Zhongxing Telecommunications Equipment Corporation (ZTE) from doing business in the U.S. Under the agreement, ZTE will be required to pay a $1 billion penalty; a compliance team selected by BIS will oversee the firm for 10 years; and ZTE will have to change its board of directors and senior leadership.[22]

Secretary of Commerce Wilbur Ross said, “Today, BIS is imposing the largest penalty it has ever levied and requiring that ZTE adopt unprecedented compliance measures. We will closely monitor ZTE’s behavior. If they commit any further violations, we would again be able to deny them access to U.S. technology as well as collect the additional $400 million in escrow. The first settlement with ZTE set a record for civil and criminal penalties in an export control case. This new settlement agreement sets another record, and brings the total penalties assessed on ZTE to $2.29 billion.”[22]

The initial ban was imposed after ZTE conducted business in Iran and North Korea in violation of the U.S. trade embargo and other U.S. sanctions.[22]

The deal received bipartisan criticism, and both chambers of Congress have introduced legislation to keep sanctions on ZTE and prevent U.S. businesses from working with the telecommunications company.[23]

Sen. Ron Wyden (D-Ore.), the top Democrat on the Senate Finance Committee, criticized the deal, saying, “The Trump administration is giving ZTE and China the green light to spy on Americans and sell our technology to North Korea and Iran, as long as it pays a fine that amounts to a tiny fraction of its revenue.”[24]

May 24, 2018: House passes amendment preventing DoD from doing business with the ZTE

On May 24, 2018, the House passed an amendment to the 2019 National Defense Authorization Act (NDAA) to prevent the U.S. Department of Defense (DoD) from doing business with Chinese telecommunications company Zhongxing Telecommunications Equipment Corporation (ZTE). It also proposed preventing the DoD from doing business with companies that do business with ZTE. The NDAA passed by a vote of 351-66.[25][26]

The amendment was a response to President Donald Trump’s decision to try to work out a deal to let ZTE do business in the U.S. Lawmakers expressed concern that allowing ZTE to conduct business in the U.S would harm national security. According to Reuters, “U.S. intelligence and U.S. law enforcement agencies have serious concerns that ZTE and other Chinese telecommunications firms use their equipment to gather intelligence on U.S. citizens. The U.S. Department of Defense has also stopped selling ZTE’s mobile phones and modems in stores on its military bases, citing potential security risks.” Additionally, ZTE conducted business with Iran and North Korea, prompting the U.S. Department of Commerce to restrict U.S. businesses from working with ZTE.[27]

ZTE was criticized by lawmakers on both sides of the aisle. Senate Minority Leader Chuck Schumer (D-N.Y.) said in a statement, “If the president and his team won’t follow through on tough sanctions against ZTE, it’s up to Congress to ensure that it happens. Both parties have come together today to strongly rebuke ZTE and the administration’s soft approach. This critical legislation along with the [Committee on Foreign Investment in the United States] reforms that it was added to are huge steps forward in our fight against the Chinese, and we should pass this legislation on the floor immediately.”[28]

Sen. Marco Rubio (R-Fla.) was also critical of ZTE. In a tweet, he wrote, “Problem with ZTE isn’t jobs & trade, it’s national security & espionage We are crazy to allow them to operate in U.S. without tighter restrictions.”[28]

May 19, 2018: U.S. and China release trade statement

On May 19, 2018, after meeting for two days to discuss trade, the U.S. and China released a statement expressing China’s willingness to increase purchases of U.S. goods and services, specifically of agriculture and energy exports. The statement also said that the nations would continue to discuss intellectual property protections and “encourage two-way investment and to strive to create a fair, level playing field for competition.”[29]

April 3, 2018: Trump administration releases list of Chinese imports that could be subject to a 25 percent tariff

On April 3, 2018, the Trump administration released a list of Chinese imports that the Office of the United States Trade Representative (USTR) was considering subjecting to a 25 percent tariff. The list targeted $50 billion in Chinese imports across 1,300 categories of products, including medicines, medical equipment, machine tools, chemicals, dishwashers, televisions, automobile parts, aircraft engines, industrial robots, some semiconductor production equipment, and electric vehicles, among other goods. The list did not include shoes, clothing, mobile phones, personal computers, laptops, or furniture.[30][31]

The list was published “[a]s part of the U.S. response to China’s unfair trade practices related to the forced transfer of U.S. technology and intellectual property. … Following USTR’s Section 301 investigation, President Trump announced in March that the United States will impose tariffs on approximately $50 billion worth of Chinese imports and take other actions in response to China’s policies that coerce American companies into transferring their technology and intellectual property to domestic Chinese enterprises,” according to the USTR.[31]

Earlier in the day, President Donald Trump told reporters, “We intend to get along with China, but we have to do something very substantial about the trade deficit. I campaigned on that, I talked about that.”[30]

According to the USTR, “The total value of imports subject to the tariff increase is commensurate with an economic analysis of the harm caused by China’s unreasonable technology transfer policies to the U.S. economy, as covered by USTR’s Section 301 investigation.”[31]

The tariffs did not go into effect immediately. The items on the list had to undergo a public notice and comment process before the USTR made a final decision about whether to impose the tariffs. A public hearing on the proposed tariffs was held on May 15, 2018, at the International Trade Commission. Businesses then had until May 22, 2018, to state their objections to the proposed tariffs. After that, the USTR had 180 days to decide whether to impose the tariffs. On April 4, 2018, Director of the National Economic Council Larry Kudlow said, "I doubt if there'd be any concrete action for several months... Nothing concrete has actually happened. These are proposals, but the message is clear."[31][32]

Iowa Sens. Joni Ernst (R) and Chuck Grassley (R), who represents one of the largest soybean-producing states, expressed concern about the Trump administration's long-term trade plan with China. Ernst said, “Every town hall I go to, trade or tariffs is one of the big questions. That’s what’s on their mind. They are starting to question the president and where we’re going with this. I need for him [Trump] to understand that we’re hurting in the Midwest and this is not helping.”[33]

Grassley said, “If the federal government takes action on trade that directly results in economic hardship for certain Americans, it has a responsibility to help those Americans and mitigate the damage it caused.”[33]

In a speech to farmers and business owners in Kentucky, Senate Majority Leader Mitch McConnell (R-Ky.) said, "Many of you are in agriculture. We are a great exporter of an agricultural product. I am nervous about getting into trade wars and I hope this doesn't go too far. ... I'm not a fan of tariffs, and I am nervous about what appears to be a growing trend in the administration to levy tariffs. This is a slippery slope, so my hope is that this will stop before it gets into a broader tit-for-tat that can't be good for our country."[34]

April 4, 2018: China responds by threatening to impose tariffs on U.S. imports

On April 4, 2018, China’s State Council responded to the U.S.’ list of proposed tariffs saying that it would impose tariffs on 106 types of U.S. goods, including soybeans, beef, sorghum, some commercial passenger planes, and sport-utility vehicles, among other goods.[35]

According to The Wall Street Journal, “Chinese government officials described China’s response as defensive and forced upon Beijing in hopes of compelling the U.S. into talks to ease the countries’ trade frictions.”[35]

Vice Finance Minister Zhu Guangyao called for negotiations between China and the U.S., saying, “Both sides have put their lists on the table. Now it’s time for negotiations.”[35]

Trump commented on the trade announcements in a tweet, writing, “We are not in a trade war with China, that war was lost many years ago by the foolish, or incompetent, people who represented the U.S. Now we have a Trade Deficit of $500 Billion a year, with Intellectual Property Theft of another $300 Billion. We cannot let this continue!”[36]

April 5, 2018: Trump calls China’s response unfair; directs USTR to consider tariffs on $100 billion in imports from China

On April 5, 2018, President Donald Trump said that China’s decision to release a list of proposed tariffs on 106 types of U.S. goods was unfair. In response, he directed U.S. Trade Representative Robert Lighthizer to consider imposing tariffs on an additional $100 billion in imports from China.[37]

Trump said in a statement, “Rather than remedy its misconduct, China has chosen to harm our farmers and manufacturers. In light of China’s unfair retaliation, I have instructed the USTR to consider whether $100 billion of additional tariffs would be appropriate under section 301 and, if so, to identify the products upon which to impose such tariffs. I have also instructed the Secretary of Agriculture, with the support of other members of my Cabinet, to use his broad authority to implement a plan to protect our farmers and agricultural interests. Notwithstanding these actions, the United States is still prepared to have discussions in further support of our commitment to achieving free, fair, and reciprocal trade and to protect the technology and intellectual property of American companies and American people. Trade barriers must be taken down to enhance economic growth in America and around the world. I am committed to enabling American companies and workers to compete on a level playing field around the world, and I will never allow unfair trade practices to undermine American interests.”[37]

China’s Commerce Ministry responded to the announcement, saying, “The Chinese side will follow suit to the end, not hesitate to pay any price, resolutely counterattack and take new comprehensive measures in response. … We will listen to its [the Trump administration’s] words and watch its actions.”[38]

Sen. Ben Sasse (R-Neb.) commented on the announcement, saying, “Hopefully, the president is just blowing off steam again. But, if he’s even half-serious, this is nuts.”[38]

On April 6, 2018, Trump wrote in a tweet, “Despite the Aluminum Tariffs, Aluminum prices are DOWN 4%. People are surprised, I’m not! Lots of money coming into U.S. coffers and Jobs, Jobs, Jobs!” Shortly after his first tweet, Trump wrote, “We are not in a trade war with China, that war was lost many years ago by the foolish, or incompetent, people who represented the U.S. Now we have a Trade Deficit of $500 Billion a year, with Intellectual Property Theft of another $300 Billion. We cannot let this continue!”[39][40]

March 25, 2018: House Intel Committee to open investigation into China's presence in Africa

House Intelligence Committee Chairman Devin Nunes said the committee would investigate China’s actions to gain influence in Africa economically and militarily. According to Reuters, "Nunes cited China’s opening last summer of a military base in Djibouti, in the Horn of Africa and at the entrance of Red Sea, as an example of how Beijing is jockeying to assert power of trade."[41]

Nunes said, “We believe they are looking at investing in ports and infrastructure around the world, not just for military capabilities but also to control those governments.” Nunes added that by having control of the Red Sea, China could "effectively cut off world trade if they want to."[41]

He also said that the committee would look at China's investments in Africa's infrastructure. He said, “The Chinese loan you billions of dollars to build a railway or port. What countries in Africa have found out is that comes with a price.”[41]

March 22, 2018: Trump signs memorandum directing USTR to recommend actions to take against China for unfair trade practices

On March 22, 2018, President Donald Trump signed a memorandum directing U.S. Trade Representative (USTR) Robert Lighthizer to recommend actions to take against China for unfair trade practices. The memorandum followed up on a probe launched by Lighthizer on August 18, 2017, under section 301 of the Trade Act of 1974. Lighthizer investigated “China’s laws, policies, practices, or actions that may be unreasonable or discriminatory and that may be harming American intellectual property rights, innovation, or technology development,” in response to Trump’s August 14, 2017, memorandum. One of the specific trade practices that Lighthizer looked into was China's practice of illegally acquiring "U.S. technologies, sometimes through requirements imposed on U.S. companies that want to sell their products in China," according to The Hill.[42][43]

According to the memorandum, the investigation revealed the following:

  • "China uses foreign ownership restrictions, including joint venture requirements, equity limitations, and other investment restrictions, to require or pressure technology transfer from U.S. companies to Chinese entities. China also uses administrative review and licensing procedures to require or pressure technology transfer, which, inter alia, undermines the value of U.S. investments and technology and weakens the global competitiveness of U.S. firms."[42]
  • "China imposes substantial restrictions on, and intervenes in, U.S. firms’ investments and activities, including through restrictions on technology licensing terms. These restrictions deprive U.S. technology owners of the ability to bargain and set market-based terms for technology transfer. As a result, U.S. companies seeking to license technologies must do so on terms that unfairly favor Chinese recipients."[42]
  • "China directs and facilitates the systematic investment in, and acquisition of, U.S. companies and assets by Chinese companies to obtain cutting-edge technologies and intellectual property and to generate large-scale technology transfer in industries deemed important by Chinese government industrial plans."[42]
  • ”China conducts and supports unauthorized intrusions into, and theft from, the computer networks of U.S. companies. These actions provide the Chinese government with unauthorized access to intellectual property, trade secrets, or confidential business information, including technical data, negotiating positions, and sensitive and proprietary internal business communications, and they also support China’s strategic development goals, including its science and technology advancement, military modernization, and economic development."[42]

As a result of the investigation, Trump directed Lighthizer to consider increasing tariffs on goods from China and directed him to present a list of recommendations by April 6, 2018, for public comment. Lighthizer was also directed to "pursue dispute settlement in the World Trade Organization (WTO) to address China’s discriminatory licensing practices,” according to the memorandum.[42]

While signing the memorandum, Trump said, “I’ve been speaking with the highest Chinese representatives, including the President, and I’ve asked them to reduce the trade deficit immediately by $100 billion. It’s a lot. So that would be anywhere from 25 percent, depending on the way you figure, to maybe something even more than that. But we have to do that. The word that I want to use is 'reciprocal.' When they charge 25 percent for a car to go in, and we charge 2 percent for their car to come into the United States, that’s not good. That’s how China rebuilt itself. The tremendous money that we’ve paid since the founding of the World Trade Organization — which has actually been a disaster for us. It’s been very unfair to us. The arbitrations are very unfair. The judging has been very unfair. And knowingly, we always have a minority and it’s not fair.”[44]

According to The Wall Street Journal, "The White House is putting together a package of 25% tariffs on Chinese imports, and Mr. Trump’s advisers said they had targeted 1,300 product categories. The president said that action could affect imports of 'about $60 billion,' but his advisers, speaking earlier, said that it was more likely to be $50 billion, or roughly 10% of the more than $500 billion the U.S. imported from China last year."[45]

Senate Minority Leader Chuck Schumer (D-N.Y.) praised the announcement, saying, “I don’t agree with President Trump on a whole lot, but today I want to give him a big pat on the back. He is doing the right thing when it comes to China.”[45]

The announcement was also praised by Lockheed Martin Corp. CEO Marillyn Hewson. She said, "I would just say that this is a very important moment for our country, in that we are addressing what is a critical area for the aerospace and defense industry, and that is protecting our intellectual property. As has been expressed, that is a threat to us if we have that stolen from our companies, because that is the lifeblood of our companies. And so, we very much welcome this action on the part of the Trump administration and the President of the United States.”[44]

Ambassador Cui Tiankai, the Chinese ambassador to the United States, commented on the proposed tariffs, saying, "We don’t want a trade war with the United States, or with anybody else. But we are not afraid of it. If somebody tries to impose a trade war on us, we will fight. … Let me assure those people who intend to fight a trade war: We will certainly fight back. We will retaliate. If people want to play tough, we will play tough with them and see who will last longer.”[46]

Cinnamon Rogers, a senior vice president of the Telecommunications Industry Association, also criticized the announcement. She said that tariffs on communications products, “would make it more expensive to expand and upgrade American communication networks."[45]

March 8, 2018: Trump announces a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports

See also: Federal policy on trade, 2017-2020

On March 8, 2018, President Donald Trump signed paperwork to put in place a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports. Based on reports from the U.S. Department of Commerce, the administration concluded that foreign imports of aluminum and steel were weakening the domestic production of these materials and could result in the U.S. not being able to support infrastructure projects or produce weapons, tanks, and aircraft that ensure national security.[47]

The administration said that the tariffs could be modified or removed on a country-by-country basis.[47]

While signing the paperwork, Trump said, "Today, I am defending America’s national security by placing tariffs on foreign imports of steel and aluminum. … This has been an assault on our country.”[48]

The administration's decision to impose tariffs was based on reports from the U.S. Department of Commerce "that determined imports of steel and aluminum are eating away at domestic production capacity in those two sectors and pose a threat to U.S. national security interests," according to Politico. One of the reports found "that excess production and capacity, particularly in China, has been a major factor in the decline of domestic aluminum production," according to a White House fact sheet. According to a White House fact sheet, Trump has the authority to impose the tariffs because “Section 232 of the Trade Expansion Act of 1962, as amended, provides the President with authority to adjust imports being brought into the United States in quantities or under circumstances that threaten to impair national security.”[49][47]

A Chinese foreign ministry spokeswoman responded to the announcement, saying, “The U.S. has overused trade remedies. ... China will take proper measures to safeguard its interests.”[50]

The tariffs took effect on March 23, 2018. On the same day, the Chinese Commerce Ministry announced that it would impose 15 percent tariffs on fruit, nuts, wine, and seamless steel pipes from the U.S. and tariffs of 25 percent on pork and recycled aluminum in response to the Trump administration’s tariffs on steel and aluminum products. The announcement did not include a date for when the tariffs would be imposed.[51][52]

April 1, 2018: China imposes tariffs on U.S. goods

On April 1, 2018, China announced a 15 percent tariff on fruit and more than 120 U.S. products and a 25 percent tariff on U.S. pork and pork-related products in response to Trump's tariffs on Chinese steel and aluminum. The tariffs took effect on April 2, 2018.[53]

According to a statement from the Chinese Finance Ministry, the tariffs imposed by the Trump administration on steel and aluminum “produced severe damage to our country’s interests.” The statement also explained that tariffs on U.S. goods were imposed “to protect our country’s interests and balance the damage created by the U.S. 232 measures.”[54]

November 9, 2017: Trump speaks to business leaders and meets with Xi

See also: Donald Trump’s trip to Asia, November 2017

On November 9, 2017, President Donald Trump spoke to business leaders, met with Chinese President Xi Jinping, and discussed North Korea, extremism in Afghanistan, and trade during a joint press conference with Xi.

During a meeting with business leaders, Trump called for a fair and reciprocal trade relationship. He said that he did not blame China for the trade imbalance; instead, he blamed past administrations for the imbalance. Trump said,

" Trade between China and the United States has not been, over the last many, many years, a very fair one for us. As we all know, America has a huge annual trade deficit with China -- a number beyond anything what anybody would understand. This number is, shockingly, hundreds of billions of dollars each year. Estimates are as high as $500 billion a year. We must immediately address the unfair trade practices that drive this deficit, along with barriers to market success. We really have to look at access, forced technology transfer, and the theft of intellectual property, which just, by and of itself, is costing the United States and its companies at least $300 billion a year.

Both the United States and China will have a more prosperous future if we can achieve a level economic playing field. Right now, unfortunately, it is a very one-sided and unfair one. But -- but I don't blame China. After all, who can blame a country for being able to take advantage of another country for the benefit of its citizens? I give China great credit.

But, in actuality, I do blame past administrations for allowing this out-of-control trade deficit to take place and to grow. We have to fix this because it just doesn't work for our great American companies, and it doesn't work for our great American workers. It is just not sustainable. I look forward to working toward that goal and to pursuing fair and lasting engagement.[55]

”
—President Donald Trump[56]

Trump also spoke about the importance of security in the region, thanked China for cutting off banking ties to North Korea, and called for more action to isolate the rogue nation. Trump said,

" In order to achieve prosperity, we must also have security. ... Chief among these threats is the North Korean nuclear menace. As I stated in my address to the National Assembly in Seoul yesterday, the United States is committed to the complete and permanent denuclearization of North Korea. So important. China can fix this problem easily and quickly, and I am calling on China and your great President to hopefully work on it very hard. ... We call on all nations to implement U.N. Security Council sanctions and resolutions and to cease doing business with the North Korean regime. All nations must come together to ensure that this rogue regime cannot threaten the world with its nuclear weapons.

I thank President Xi for his recent efforts to restrict trade with North Korea and to cut off all banking ties. Mr. President, thank you, and thank you to all of the Chinese business leaders here today for standing with the United States and our coalition of responsible nations. But time is quickly running out. We must act fast, and hopefully China will act faster and more effectively on this problem than anyone. I'm also calling on Russia to help rein in this potentially very tragic situation.[55]

”
—President Donald Trump[56]

November 8, 2017: Xi welcomes Trump to China

See also: Donald Trump’s trip to Asia, November 2017

On November 8, 2017, President Donald Trump met with Chinese President Xi Jinping in Beijing, China. Upon arrival, Trump and first lady Melania Trump were greeted by a marching band, soldiers standing at attention, and children waving miniature Chinese and American flags. The Trumps then toured the Forbidden City and watched an opera performance and acrobatic display with Xi and Madame Peng Liyuan. Trump was the first American president to receive a private tour of the Forbidden City from a Chinese president.

According to Reuters, the welcoming ceremony for Trump was "more elaborate than usual. ... While the sprawling palace complex in the center of Beijing is a regular stop for visiting dignitaries, it is rare for a Chinese leader to provide a personal escort, confirmation of the 'state visit-plus' treatment that China had promised for Trump."[57]

Trump and Xi discussed North Korea and trade during their meetings.

September 13, 2017: Trump administration blocks private equity firm with Chinese ties from acquisition deal

On September 13, 2017, President Donald Trump issued an order blocking Canyon Bridge Capital Partners, a private equity firm with ties to the Chinese government, from acquiring Lattice Semiconductor Corporation, an American chip manufacturer. Secretary of the Treasury Steven Mnuchin said in a statement that the Committee on Foreign Investment in the United States and Trump determined "the transaction poses a risk to the national security of the United States that cannot be resolved through mitigation. The national security risk posed by the transaction relates to, among other things, the potential transfer of intellectual property to the foreign acquirer, the Chinese government's role in supporting this transaction, the importance of semiconductor supply chain integrity to the U.S. government, and the use of Lattice products by the U.S. government." The deal was estimated in 2016 to be worth $1.3 billion.[58][59]

August 14, 2017: Probe launched into Chinese trade practices

On August 14, 2017, President Donald Trump signed a memorandum requesting that U.S. Trade Representative Robert Lighthizer review allegations that China had engaged in trade practices that violated its trade agreements with the U.S., including forcing companies to reveal commercial secrets in exchange for access to the Chinese market.[60]

While signing the memorandum, Trump said, “We will safeguard the copyrights, patents, trademarks, trade secrets and other intellectual property that is so vital to our security and to our prosperity. It’s a very big move. ... This is just the beginning, I want to tell you that. This is just the beginning.”[61]

On August 18, 2017, Lighthizer initiated an investigation into China's practices under section 301 of the Trade Act of 1974.[42]

June 22, 2017: U.S.-China cooperation concerning North Korea

On June 22, 2017, Reuters reported that the U.S. and China had committed to working together to find diplomatic approaches to counter North Korean nuclear developments. After a meeting between Secretary of State Rex Tillerson, Secretary of Defense James Mattis, and top Chinese diplomats, Tillerson told reporters, "We reiterated to China that they have a diplomatic responsibility to exert much greater economic and diplomatic pressure on the regime if they want to prevent further escalation in the region." He further stressed that the U.S. wanted China to cease economic activity with North Korea, saying, "Countries around the world and in the U.N. Security Council are joining in this effort, and we hope China will do their part as well."[62]

In a June video message released in China, U.S. Ambassador to China Terry Branstad also stressed North Korea as a top priority, saying, "Resolving the bilateral trade imbalance, stopping the North Korea threat, and expanding people-to-people ties will be my top priorities."[63]

During the G20 summit in July 2017, Trump and Chinese President Xi spoke concerning North Korea. According to Treasury Secretary Steven Mnuchin, "In regards to China, we had very direct discussions about North Korea. We had very direct discussions about military and security cooperation. I think that President Trump made very clear to President Xi that he is focused on this issue, and wants to move forward and make progress. And I think President Xi gave a very interesting perspective from their standpoint."[64]

May 12, 2017: U.S. and China agree to first trade deal

On May 12, 2017, the U.S. and China agreed to enact their first trade deal under President Donald Trump by mid-July 2017. Reuters reported that the deal aimed to solidify agreements concerning the importing of American beef to China and the importing of cooked poultry from China to the U.S.[65] According to Forbes, the deal primarily set dates for already-pending actions. The deal also announced U.S. participation in China's One Belt One Road program, which was intended to promote China's position in the global economy.[66]

April 12, 2017: Trump says China is not a currency manipulator

In an interview with The Wall Street Journal on April 12, 2017, President Donald Trump said that he no longer considered China a currency manipulator. Currency manipulation occurs when a government tries to influence the exchange rate by buying or selling foreign currency. According to the newspaper, "Trump said the reason he has changed his mind on one of his signature campaign promises is that China hasn’t been manipulating its currency for months and because taking the step now could jeopardize his talks with Beijing on confronting the threat of North Korea."[3]

In a tweet on April 16, 2017, Trump suggested his change in position on China was driven by its cooperation in addressing North Korean nuclear development. He wrote, "Why would I call China a currency manipulator when they are working with us on the North Korean problem? We will see what happens!"[67]

See also

External links

Footnotes

  1. ↑ The New York Times, "Transcript: Donald Trump Expounds on His Foreign Policy Views," March 26, 2016
  2. ↑ CNBC, "Donald Trump gets tough on China by borrowing a little from Beijing's playbook," December 6, 2016
  3. ↑ 3.0 3.1 The Wall Street Journal, "Trump Says Dollar ‘Getting Too Strong,’ Won’t Label China a Currency Manipulator," April 12, 2017
  4. ↑ The Hill, "Trump tells Xi trade deficit with China 'not sustainable,'" January 16, 2018
  5. ↑ 5.0 5.1 WhiteHouse.gov, "Statement from the Press Secretary Regarding the President’s Working Dinner with China," December 1, 2018
  6. ↑ WhiteHouse.gov, "Statement from the President," September 17, 2018
  7. ↑ The New York Times, "Trump Delays a Tariff Deadline, Citing Progress in China Trade Talks," February 24, 2019
  8. ↑ Politico, "Trump to slap tariffs on $200B more Chinese goods," September 17, 2018
  9. ↑ The Wall Street Journal, "Trump Announces New Tariffs on Chinese Imports," September 18, 2018
  10. ↑ Reuters, "China says Trump forces its hand, will retaliate against new U.S. tariffs," September 17, 2018
  11. ↑ The Hill, "Trump announces tariffs on $200B in Chinese goods," September 17, 2018
  12. ↑ The Hill, "Ross: 'Nobody's going to actually notice' new tariffs on China," September 18, 2018
  13. ↑ 13.0 13.1 Office of the United States Trade Representative, "Request for Comments Concerns Proposed Modification of Action Pursuant to Section 301: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation," July 10, 2018
  14. ↑ Office of the United States Trade Representative, "Statement By U.S. Trade Representative Robert Lighthizer on Section 301 Action," July 10, 2018
  15. ↑ Associated Press, "China vows retaliation for $200 billion US tariff threat," July 11, 2018
  16. ↑ The Hill, "China threatens tariffs on $60 billion of US imports," August 3, 2018
  17. ↑ 'Bloomberg, "Trump Shows He’s Ready to Go All-In Against China on Tariffs," September 7, 2018
  18. ↑ 18.0 18.1 WhiteHouse.gov, "Statement by the President Regarding Trade with China," June 15, 2018
  19. ↑ 19.0 19.1 USTR.gov, "USTR Issues Tariffs on Chinese Products in Response to Unfair Trade Practices," June 15, 2018
  20. ↑ 20.0 20.1 The Hill, "Trump announces tariffs on $50 billion in Chinese goods," June 15, 2018
  21. ↑ Politico, "Trump amps up China trade war with tariffs on high-tech imports," June 15, 2018
  22. ↑ 22.0 22.1 22.2 Commerce.gov, "Secretary Ross Announces $1.4 Billion ZTE Settlement; ZTE Board, Management Changes and Strictest BIS Compliance Requirements Ever," June 7, 2018
  23. ↑ The Hill, "Lawmakers target ZTE, Huawei in defense bill," June 7, 2018
  24. ↑ The Wall Street Journal, "China’s ZTE to Pay $1 Billion Fine in Settlement With U.S." June 7, 2018
  25. ↑ Congress.gov, "H.R.5515 - National Defense Authorization Act for Fiscal Year 2019," accessed May 24, 2018
  26. ↑ Clerk.House.gov, "Final Vote Results for Roll Call 230," accessed May 24, 2018
  27. ↑ Reuters, "U.S. reaches deal to keep China's ZTE in business: congressional aide," May 25, 2018
  28. ↑ 28.0 28.1 The Hill, "Putting pressure on Trump, House passes bill barring government from doing business with ZTE," May 24, 2018
  29. ↑ WhiteHouse.gov, "Joint Statement of the United States and China Regarding Trade Consultations," May 19, 2018
  30. ↑ 30.0 30.1 The Wall Street Journal, "U.S. Announces Tariffs on $50 Billion of China Imports," April 3, 2018
  31. ↑ 31.0 31.1 31.2 31.3 USTR.gov, "Under Section 301 Action, USTR Releases Proposed Tariff List on Chinese Products," April 3, 2018
  32. ↑ Twitter, "Fox Business," April 4, 2018
  33. ↑ 33.0 33.1 The Wall Street Journal, "Tariff Showdown Shifts to Intense Negotiation Period," April 5, 2018
  34. ↑ The Hill, "McConnell ‘nervous’ Trump tariffs will hurt the country," April 4, 2018
  35. ↑ 35.0 35.1 35.2 The Wall Street Journal, "China Tariffs Threaten U.S. Cars, Planes and Soy in Response to Trump," April 4, 2018
  36. ↑ Twitter, "Donald J. Trump," April 4, 2018
  37. ↑ 37.0 37.1 WhiteHouse.gov, "Statement from President Donald J. Trump on Additional Proposed Section 301 Remedies," April 5, 2018
  38. ↑ 38.0 38.1 The Wall Street Journal, "Trump Weighs Tariffs on $100 Billion More of Chinese Goods," April 6, 2018
  39. ↑ Twitter, "Donald J. Trump," March 6, 2018
  40. ↑ Twitter, "Donald J. Trump," March 6, 2018
  41. ↑ 41.0 41.1 41.2 Reuters, "U.S. House panel to probe China military footprint in Africa: chairman," March 25, 2018
  42. ↑ 42.0 42.1 42.2 42.3 42.4 42.5 42.6 WhiteHouse.gov, "Presidential Memorandum on the Actions by the United States Related to the Section 301 Investigation," March 22, 2018
  43. ↑ The Hill, "Trump says new tariffs, penalties on China could total $60B," March 22, 2018
  44. ↑ 44.0 44.1 WhiteHouse.gov, "Remarks by President Trump at Signing of a Presidential Memorandum Targeting China’s Economic Aggression," March 22, 2018
  45. ↑ 45.0 45.1 45.2 The Wall Street Journal, "U.S. to Apply Tariffs on Chinese Imports, Restrict Tech Deals," March 22, 2018 Cite error: Invalid <ref> tag; name "wsjapply" defined multiple times with different content
  46. ↑ The Hill, "Chinese ambassador: We're 'not afraid' of a trade war," March 22, 2018
  47. ↑ 47.0 47.1 47.2 WhiteHouse.gov, "President Donald J. Trump is Addressing Unfair Trade Practices That Threaten to Harm Our National Security," March 8, 2018
  48. ↑ The Hill, "Defying GOP, Trump orders steel and aluminum tariffs," March 8, 2018
  49. ↑ Politico, "Trump blasted at home and abroad for plan to impose steel, aluminum tariffs," March 1, 2018
  50. ↑ The Wall Street Journal, "Trump to Impose Steep Aluminum and Steel Tariffs," March 1, 2018
  51. ↑ Politico, "Trump readies tariffs with few exceptions," March 8, 2018
  52. ↑ The Wall Street Journal, "China Fires Warning Shot at U.S. Over Tariffs," March 22, 2018
  53. ↑ The Hill, "China hits US with new tariffs on 128 imports," April 1, 2018
  54. ↑ The Wall Street Journal, "China Retaliates Against Trump Tariffs With Duties on American Meat and Fruit," April 1, 2018
  55. ↑ 55.0 55.1 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
  56. ↑ 56.0 56.1 WhiteHouse.gov, "Remarks by President Trump at Business Event with President Xi of China | Beijing, China," November 9, 2017
  57. ↑ Reuters, "China's Xi fetes Trump on first day of Beijing trip," November 8, 2017
  58. ↑ Department of the Treasury, "Statement On The President’s Decision Regarding Lattice Semiconductor Corporation," September 13, 2017
  59. ↑ CNN Money, "Trump stops China-backed takeover of U.S. chip maker," September 13, 2017
  60. ↑ CNN, "Trump administration vs. Chinese trade: Explained," August 14, 2017
  61. ↑ The Hill, "Trump signs memo on Chinese trade practices," August 14, 2017
  62. ↑ Reuters, "In high-level talks, U.S. asks China to do more to rein in North Korea," June 22, 2017
  63. ↑ Reuters, "New U.S. ambassador to China says North Korea a top priority," June 26, 2017
  64. ↑ Reuters, "Trump keeps it friendly with Xi at G20 on North Korea threat," July 9, 2017
  65. ↑ Reuters, "U.S., China agree to first trade steps under 100-day plan," May 12, 2017
  66. ↑ Forbes, "Trump's Trade Deal 'Win' With China: Fake News?" May 14, 2017
  67. ↑ CNN, "Trump defends about-face on labeling China a currency manipulator," April 16, 2017
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