On Apr 3, the United States unveiled the list of the Chinese imports which will come under fire from the proposed U.S. tariffs. Chinese products which are utilized in high-tech sectors like industrial robots, information technology, communication technology, aerospace, and medicine will bear the brunt of the tariffs.

Notably, intellectual property theft by Chinese companies in the guise of producing goods for the American tech giants is the rationale behind Trump administration’s imposition of these tariffs. Safeguarding of the highly valuable patents of the American tech-heavy companies from China is of foremost importance to the United States.

Further, this move highlights the Trump administration’s aggressive efforts to shield next-generation innovative products of these high-tech industries of the country. Consequently, investment in some of these stocks with a favorable Zacks Rank should prove to be lucrative at the moment.

National Security Concerns Leads to Imposition of Tariffs

The U.S. government imposed 25% tariffs targeting 1,300 Chinese imports for a total worth of $50 billion. However, these tariffs will not be effective immediately. Domestic companies and consumers can lobby to delete or add products in the list by May 11. A public hearing on the issue will take place on May 15.

Trump administration is deeply concerned about China’s drive to unseat United States as the primary developer and supplier of state-of-the-art products in the fields of high-tech artificial intelligence, semiconductors, quantum computing and various other digital technology-driven sectors.

Notably, most of the big manufacturers of these products are fully patronized by the Chinese government. These companies have become serious threat to the U.S. economic and military supremacy.  Incidentally, China runs a massive $375 billion trade surplus against United States.

Sectors to Gain

U.S. companies that rely on Chinese imports are unhappy about the move as it will raise prices of high-tech equipment and several electronics products for the IT sector. However, a hike in product prices will certainly help U.S. manufacturers engaged in producing goods on which tariffs will be levied.