President Trump has signed a memorandum paving the way for sweeping tariffs, worth up to 60 billion U.S. dollars, on Chinese goods.
For more let's turn to our Ro Aram, who has been following the story….
Aram… this trade dispute between the Trump administration and China has been simmering for some time now...and now Trump has thrown the first punch.
What did he have to say?
Well Mark… President Trump accused China of what he called years of intellectual property theft and Chinese pressure on American companies to hand knowledge over.
He also reiterated his concerns over the growing trade deficit between the two countries.
"But we have a trade deficit, depending on the way you calculate it, of 504 billion dollars. Now some people would say it's really 375 billion dollars. Many different ways of looking at it but any way you look at it, it is the largest deficit of any country in the history of our world. It's out of control."
He went on to say that the punitive tariffs would benefit the U.S., adding that every trade deal had to be reciprocal.
"And frankly, it's going to make us a much stronger, much richer nation. The word is reciprocal. That's the word I want everyone to remember…… If they charge us, we charge them the same thing. That's the say it's got to be. That's not the way its been for many, many years. For decades, it has not been that way."
Now Aram…. China has already said it will retaliate, accusing the U.S. of abusing global trade rules.
What did else did Beijing have to say?
Well Mark, China has issued a belligerent response...with its embassy in Washington, vowing to "fight to the end" in any trade war with the United States.
Beijing's Commerce Ministry also announced through a statement Friday that China plans to slap tariffs on three billion dollars-worth of American imports, ranging from steel to pork.
It added that Beijing also plans to take legal action against the U.S. under the World Trade Organization framework.
However, it did say that Beijing is willing to resolve the trade dispute with Washington through dialogue.
Back to you, Mark.
