Trump Proposes Fresh Tariffs On $200B Chinese Goods But Lawmakers Sound Caution

As the Trump administration ramped up its trade war with China by announcing a plan to slap additional tariffs on $200 billion worth of Chinese goods on Tuesday, Republican lawmakers warned the move could cause serious damages to several U.S.-based businesses.

The government on Tuesday released a list of more than 6,000 Chinese goods that could face fresh 10 percent tariffs. Those include seafood, propane, toilet paper and many other things. The administration said the fresh levies would take effect after public consultations in August.

However, the decision invited criticism from several people including Republican lawmakers and U.S. business groups. Even the U.S. Chamber of Commerce, which had backed Trump’s domestic tax cuts, was not in support of Washington’s move as it could result in retaliatory tariffs and “will raise the costs of every day goods for American families, farmers, ranchers, workers, and job creators,” Reuters reported.

Expressing his disapproval, Senate Finance Committee Chairman Orrin Hatch said Tuesday’s decision to impose fresh tariffs on Chinese imports “appears reckless and is not a targeted approach."

"We cannot turn a blind eye to China’s mercantilist trade practices, but this action falls short of a strategy that will give the administration negotiating leverage with China while maintaining the long-term health and prosperity of the American economy," he said in a statement.

Ruing that the United States and Chinese governments are not taking any serious steps to negotiate a solution to the dispute, House Ways and Means Committee Chairman Kevin Brady said President Donald Trump and his Chinese counterpart should meet face-to-face to solve the ongoing issue.

“With this announcement, it’s clear the escalating trade dispute with China will go one of two ways — a long, multi-year trade war between the two largest economies in the world that engulfs more and more of the globe, or a deliberate decision by President Trump and President Xi to meet and begin crafting an agreement that levels the playing field between China and the U.S. for local farmers, workers, and businesses,” he said.

Rep. Dave Reichert warned the move could have an adverse impact on U.S. farmers and consumers already hit by retaliatory tariffs imposed by China on certain imports. It may be noted that the U.S. government imposed 25 percent tariffs on $34 billion worth of Chinese imports last week and the Asian nation retaliated with matching tariffs on the same amount of U.S. imports.

“I strongly disagree with the Administration’s plan to place tariffs on additional goods, resulting in higher prices here at home for American families and less sales abroad for American workers and farmers as markets are closed to American-made goods through retaliation. I am committed to working with the Administration to address China’s theft of American technology and intellectual property in a way that targets the problem and does not further harm communities across America,” he said.

Meanwhile, China on Wednesday warned it would immediately file a complaint to the World Trade Organization against “US unilateralism.” It said the U.S. decision to impose a fresh round of tariffs is “totally unacceptable.”

"The action from the US is hurting China, hurting the whole world and also hurting the US itself," China's Commerce Ministry said in a statement.