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ITIF: Trump's New Trading Policy Threatens to Cost US Economy $330Bln

WASHINGTON (Sputnik) - President Donald Trump's plan to impose new tariffs on Chinese information and communication technology (ICT) imports will cost the US economy more than $330 billion over the next decade, the International Technology and Innovation Foundation (ITIF) said in a report.
Sputnik

"ITIF estimates that a 10 percent tariff levied on Chinese ICT imports would slow the growth of U.S. output by $163 billion over the next 10 years, and a 25 percent tariff would slow output by $332 billion," the report said on Friday.

The report noted low-cost, best-of-breed ICT products from China are necessary to improve productivity and develop competitive information and communication services trade in the United States.

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Despite Trump's effort to stop China's unfair trade practices, adding new tariffs on ICT products would hurt working Americans by reducing their income.

Earlier this week, media reported, citing sources in the presidential administration, that Trump's aides are preparing a tough, $30-billion tariff package on Chinese imports as a response to alleged intellectual property violations by China.

Trump has already signed an order that imposes 25 percent tariffs on steel imports and 10 percent duties on aluminum imports. The action will go into effect on March 23.

His announcement was sharply criticized by Washington's major trade partners, particularly Canada, China and the European Union, which accused Trump of excessive protectionism and pledged to impose countermeasures.

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