Trump initiates trade action against China, accuses it of intellectual property theft

US President Donald Trump on Thursday initiated a trade action against China saying the US deficit with Beijing was “out of control” at about $504 billion and there was a huge “intellectual property theft situation.”

It is the largest deficit of any country in the history of our world. It’s out of control,” Trump said before signing a memorandum.

We have a tremendous intellectual property theft situation going on, which likewise is hundreds of billions of dollars.

The presidential memorandum signed by Trump could impose tariffs on up to $60 billion of imports from China.

However his action was far removed from threats that could have ignited a global trade war.

Under the terms of the memorandum, the US will target the Chinese imports only after a consultation period, a measure that will give industry lobbyists and legislators a chance to water down a proposed target list which runs to 1,300 products.

China will also have space to respond to Trump's actions, reducing the risk of immediate dramatic retaliation from Beijing.

I view them as a friend, Trump said in an conciliatory tone.

We have spoken to China and we are in the middle of negotiations," Mr Trump said, adding that loss of American jobs from unfair trade was one of the main reasons he had been elected in 2016.

According to report, the United States runs a $375 billion goods trade deficit with China.