White House says still pursuing China trade sanctions - Economy

Ivanka Trump and her husband Jared Kushner dine with Chinese officials

Ivanka Trump and her husband Jared Kushner dine with Chinese officials

China and the U.S. averted a trade war by reaching an agreement on May 20 under which Beijing agreed to "significantly increase" its purchases of American goods and services to reduce United States dollars 375 billion trade deficit with Washington.

Those talks will come with the threat of new tariffs, with the White House laying out a June 15 deadline for specifying which Chinese goods - up to $50 billion worth - will be subject to a 25% tariff.

"What we're having with China is a trade dispute, fair and simple", he said.

Treasury Secretary Steven Mnuchin said on May 20 that tariffs targeting Chinese products were put "on hold" following China's agreement to reduce its trade surplus with the US.

The US tariffs threat has been widely opposed by industry leaders and some members of Congress who warn the duties could end up raising costs for American consumers, devastating farmers and hurting other exporters if China proceeds with retaliatory duties.

According to the White House, to protect its national security, the USA will implement specific investment restrictions and enhanced export controls for Chinese persons and entities related to the acquisition of industrially significant technology.

China has made their points that if nothing is agreed upon between two and the USA still imposes any tariffs then China will show no cooperation and retaliate from their tariffs on U.S. exports such as that of soya beans.

China cut tariffs on US automobiles, and Trump has pledged support for ZTE, a Chinese company affected negatively by USA sanctions.

The White House statement said the president had been "updated" on several steps following the March release by U.S. Trade Representative Robert Lighthizer of a study detailing a sweeping Chinese effort to vacuum up American technology through legal and illegal means. Those requests in particular have provoked a backlash from China, which has threatened its own potential set of tariffs on $50 billion in American goods.

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The White House announced Tuesday that the crackdown on Chinese trade would take effect in June. "It is obviously against the consensus reached by the USA and China in Washington recently". But he expects the president to continue to press for a better deal with China.

Asian equities slid on Wednesday as concerns about the repercussions of Italy's political turmoil and the renewal of trade tensions between the USA and China gripped financial markets.

The exchange of tough messages has made it more unlikely that the two sides will reach a compromise on their trade disputes at scheduled talks this weekend - if they are happening at all.

In addition to the bilateral talks with Beijing, the USA also will continue to pursue the complaints filed in the World Trade Organization as well as the cases against individual products.

Trump is seeking to curb investment in sensitive technology, ratcheting up pressure on Beijing.

"I'm also thinking about what they're doing to help us with peace with North Korea".

A United States negotiating team is in China, preparing for the next round of trade and investment talks.

Economists estimate that U.S. exports could rise by up to $90 billion over a period of years.

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