Given that USA has a trade deficit of United States dollars 500 billion per annum, Trump asked a plan for targeting USD 100 billion Chinese imports. Trade experts have said tariffs imposed as a result of the China intellectual property probe may fall outside of WTO rules.
Malmstrom, who held talks with U.S. Trade Representative Robert Lighthizer on Saturday, said she had not been given any clear reassurance that the European Union would be exempted.
The White House spokeswoman declined to provide details about how the administration would like China to accomplish the surplus-cutting goal - whether increased purchases of USA products such as soybeans or aircraft would suffice, or whether it wants China to make major changes to its industrial policies, cut subsidies to state-owned enterprises or further reduce steel and aluminum capacity.
Anne Forristall Luke, president of the U.S. Tire Manufacturers Association, said the group would be "pressing very hard" for an exemption from tariffs for high-strength wire rod used to make cord for steel tire belts that is not produced by U.S. mills.
The US text, released to the media by a Geneva-based trade official, comes as the 164-member WTO faces challenges unprecedented in its 23-year history.
Washington is targeting Chinese high technology companies to punish them for China's investment policies that effectively force United States companies to give up their technology secrets in exchange for being allowed to operate in the country along with other allegations of intellectual property theft.
Higher tariffs for those products would be hurtful to American families, said one trade lobbyist.
The White House recently urged the top economic adviser of Chinese President Xi Jinping to come up with a plan for reducing that number. U.S. Treasury yields traded just off one-week lows touched earlier in the session.
"He's serious about calling their hand on this, and my understanding is they are looking at a broad array of options to do that", Brady said.
So far, only Mexico and Canada are thought to be exempt from the tariffs, which impose a 25 per cent levy on steel imports entering the country and 10 per cent on aluminium.
A second person, who is an industry lobbyist in Washington who is familiar with the administration's thinking said the process was being led by Peter Navarro, an avowed protectionist, who has accused American companies of conniving with the Chinese state, and by Commerce Secretary Robert Lighthizer, who also favors tariffs as a tool.