U.S. Trade Representative Katherine Tai has proposed increased tariffs on a range of Chinese goods, citing the need for expanded enforcement to address China’s technology transfer actions, which have harmed U.S. workers and manufacturers. Tai’s office released a four-year review of tariffs imposed by former President Donald Trump, concluding that while they had encouraged some reforms by China, further action was necessary.
The report highlighted China’s persistence in technology acquisition efforts, including cyber intrusions and theft, which have hindered U.S. commerce. Previous tariffs were found to have minimal impact on U.S. economy-wide prices and employment but effectively reduced imports from China while increasing imports from other countries.
To strengthen the impact of proposed tariff increases, the U.S. Trade Representative recommended increased funding for U.S. Customs and Border Protection to enhance enforcement. Collaboration between the private sector and government was also urged to combat what was described as “state-sponsored technology theft.” Additionally, the report suggested establishing exclusions from tariffs for certain machinery used in domestic manufacturing and emphasized ongoing efforts to diversify U.S. supply chains.
Source: Reuters