Trump ponders tariffs on China over intellectual property and technology thefts

David Jackson | USA TODAY

Show Caption Hide Caption Retailers urge Trump against China tariffs Several large retail companies, including Wal-Mart, Target, Best Buy, and Macy's, are making a direct appeal to President Donald Trump not to impose tariffs on goods imported from China. Aleksandra Michalska reports. Video provided by Reuters

WASHINGTON — Approaching a possible trade war with China, President Trump is considering hitting the Chinese with new tariffs over what aides call intellectual property and technology theft, officials said Wednesday.

“Tomorrow the president will announce the actions he has decided to take based on" the U.S. trade representative's "investigation into China’s state-led, market-distorting efforts to force, pressure and steal U.S. technologies and intellectual property,” said Raj Shah, Trump's principal deputy press secretary.

Specifics of Trump's actions are still being discussed, said two administration officials, who spoke on condition of anonymity because they weren't authorized to speak publicly.

Any penalties would likely not be imposed right away, the officials said. American industrial leaders — some of whom criticized Trump for imposing tariffs on steel and aluminum imports earlier this month — will probably be given a chance to comment on the proposals.

The office of the U.S. trade representative is wrapping up an investigation that details allegations against China, officials said, including the use of state-run companies to pry away intellectual and technology information from American companies that do business in the country.

Previously: Trump to sign tariffs of 25% on steel and 10% on aluminum at White House Thursday afternoon

More: European Union questions Trump's tariffs as it hopes to be exempt

More: Economic protectionism: Why a trade war could dent your 401(k) plan

The trade representative also accuses the Chinese of cyber-intrusions to obtain U.S. trade secrets, the officials said.

In addition to tariffs, Trump's options include a formal complaint to the World Trade Organization and investment restrictions on China.

Bracing for the potential tariffs, Chinese officials have denied the U.S. allegations. They have also said they are planning to open up their economy more to level the playing field between Chinese and foreign firms.

“I hope both China and the U.S. will act rationally, and not be led by emotions, and avoid a trade war,” Premier Li Keqiang told reporters this week.

Trump railed against what he called unfair trade practices throughout his presidential campaign, with China a prime target.

Most famously, during a campaign rally in Indiana in May 2016, Trump said, "we can’t continue to allow China to rape our country and that’s what they’re doing. It’s the greatest theft in the history of the world.”

Trump took a softer tone during a November visit to China, saying he didn't blame his hosts for their trade practices, instead putting the onus on previous presidents who allowed them. “After all," Trump said in Beijing, "who can blame a country for being able to take advantage of another country to the benefit of its citizens?”

After the announcement of previous tariffs — 25% on steel imports, 10% on aluminum — critics said Trump risked a trade war in which other countries would slap tariffs on U.S. products, increasing prices for consumers worldwide.

Some groups like the National Retail Federation are raising similar concerns about the prospect of tariffs targeting China.

In a statement accompanying a letter to the president this week, NRF President and CEO Matthew Shay said: "We agree it’s time to address China’s unfair trade practices, but we can do so in a way that doesn’t destroy jobs, create uncertainty for businesses and increase every American’s cost of living."