Semiconductors and lithium batteries were among 1,300 Chinese products the US earmarked for 25 per cent tariffs, as a trade battle between the two countries escalated.
Released this week, the proposed list, which also includes a number of other electronics components as well as transceivers, microwave amplifiers and communication satellites, aims to impose tariffs on a total of $50 billion worth of Chinese goods annually.
The US administration said the move comes in response to policies in China which “coerce American companies into transferring their technology and intellectual property to domestic Chinese enterprises”. Officials added the list was crafted to target China’s industrial sector while minimising the impact on the US economy.
In a statement, the Chinese embassy in Washington D.C. blasted the action “self-defeating” and a threat to “world economic stability”, but warned it “is not afraid of, and will not recoil from, a trade war”.
The proposal is still subject to a public comment and hearing process, during which US companies will be able to sound off on the administration’s product choices.