By DOUG SCHMITZ

Iowa Correspondent

WASHINGTON, D.C. — President Donald Trump last week directed U.S. Trade Representative (USTR) Robert Lighthizer to impose additional tariffs on $200 billion of Chinese imports “as part of the United States’ continuing response to China’s theft of American intellectual property and forced transfer of American technology.”

The measure is the first of a three-phase process Trump said followed seven weeks of uncooperative negotiations by China, which would take effect Sept. 24 at a 10 percent rate (phase two) and increase to 25 percent Jan. 1, 2019 (phase three).

“If China takes retaliatory action against our farmers or other industries, we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports,” Trump said in a release sent to members of the press.

“These practices plainly constitute a grave threat to the long-term health and prosperity of the United States economy,” he added. “China, however, still refuses to change its practices – and indeed recently imposed new tariffs in an effort to hurt the United States economy.”

The Washington Times reported the tariffs were issued under Section 301 of the Trade Act of 1974, which gives the president broad power to respond to foreign governments engaged in unjust or discriminatory trade that harms the U.S.

According to USTR estimates, Chinese theft of intellectual property cost U.S. companies between $225 billion-$600 billion annually.

The USTR said its March Section 301 investigation revealed:

•China uses joint venture requirements, foreign investment restrictions, and administrative review and licensing processes to require or pressure technology transfer from U.S. companies.

•China deprives U.S. companies of the ability to set market-based terms in licensing and other technology-related negotiations.

•China directs and unfairly facilitates the systematic investment in, and acquisition of, U.S. companies and assets to generate large-scale technology transfer.

•China conducts and supports cyber intrusions into U.S. commercial computer networks to gain unauthorized access to commercially-valuable business information.

The USTR said additional tariffs on a list of 5,745 full or partial lines of the original 6,031 tariff lines were on a proposed list of Chinese imports announced July 10. 

In June and August, the USTR released two lists of Chinese imports, with a combined annual trade value of approximately $50 billion, with the goal of obtaining “the elimination of China’s harmful acts, policies and practices.” 

“Unfortunately, China has been unwilling to change its policies involving the unfair acquisition of U.S. technology and intellectual property,” said Lighthizer. “Instead, China responded to the United States’ tariff action by taking further steps to harm U.S. workers and businesses.”

Chris Hurt, Purdue University professor of agricultural economics, told Farm World, “For agriculture, the great hope is the negotiated settlement with China will include assurances of much larger agricultural product purchases – maybe an increase of 40 percent or more.”

“The downside for U.S. agriculture is that tariffs stay in place for a long time and countries like China find ways to avoid doing business with U.S. agriculture,” he added. “In this way, the trade war can/will create permanent damage where getting markets back will require many years.”

But Trump said, “China has had many opportunities to fully address our concerns. Once again, I urge China’s leaders to take swift action to end their country’s unfair trade practices.”

Drew Greenblatt, president and owner of Baltimore, Md.-based Marlin Steel, told CNBC Sept. 23, “We definitely need our president and our nation to protect intellectual property,” adding he saw the new tariffs as “short-term pain for long-term gain.”

“We make everything in Baltimore,” he said. “We only buy steel from Indiana and Illinois and when we lose opportunities because Chinese companies are ripping us off, then that means less steel is bought from Indiana and Illinois and less unemployed steelworkers in Baltimore are getting opportunities to buy a home, and own a car.”

In other trade-related news, White House economic adviser Kevin Hassett told Fox News Sept. 21 the United States is moving forward on its trade deal with Mexico without Canada before the Oct. 1 deadline to update the North American Free Trade Agreement.

“We’re still talking to Canada, and we’re getting very, very close to the deadline where we’re going to have to move ahead with Mexico all by themselves,” he said.