U.S announces 25% new tariffs on Chinese tech goods

The U.S will impose a hefty 25 per cent tariff on the USD 50 billion worth of Chinese goods containing 'industrially significant' technology, the White House said, days after the two sides reached an agreement and vowed not to launch a trade war against each other.

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 USD 375 billion trade deficit with Washington.

After lengthy second round of talks in Washington, the two sides issued a joint statement vowing not to launch a trade war against each other.

"The United States will impose a 25 per cent tariff on USD 50 billion of goods imported from China containing industrially significant technology, including those related to the 'Made in China 2025' programme," the White House said in a statement.

The final list of covered imports will be announced by June 15, and tariffs will be imposed on those imports shortly thereafter, it said.

The new tariff is part of one of the three major steps that the U.S is taking based on the March 22, memorandum signed by President Donald Trump.

It announced that the U.S would take multiple steps to protect domestic technology and intellectual property from certain discriminatory and burdensome trade practices by China.