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WASHINGTON (Reuters) - U.S. President Donald Trump signed a presidential memorandum on Thursday that could impose tariffs on up to $60 billion of imports from China, although his action was far removed from threats that could have ignited a global trade war.

Under the terms of the memorandum, Trump 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, and Trump struck an emollient tone as he started speaking. “I view them as a friend,” he said.

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

The threatened tariffs as well as possible investment restrictions on China stem from the U.S. Trade Representative’s investigation of alleged misappropriation of U.S. intellectual property by Beijing.

U.S. officials say that probe, undertaken through Section 301 of the 1974 Trade Act, has found that China engages in unfair trade practices by forcing American investors to turn over key technologies to Chinese firms.

Washington will also pursue alleged breaches of intellectual property law by China through the World Trade Organization, a body that has repeatedly drawn the ire of the administration but which could provide a resolution that avoids a trade war.

Trump, who earlier this month announced steep tariffs on steel and aluminum imports to the United States, also wants the Chinese to take action that would lower the $375 billion goods trade deficit that the United States is running with China.

Global stocks sold off earlier on Thursday on the expectation of tough action from Trump and fears of a global trade war. They recovered somewhat after his announcement but fell again in late afternoon trading.

WILL CHINA ROCK THE BOAT?

The U.S. Trade Representative’s office will now present a list of Chinese products that could be targeted, primarily from the high-tech sector. There will then be a 60-day consultation period before definitive action is taken.

White House officials told a briefing ahead of the trade announcement that the administration was eyeing tariffs on $50 billion in Chinese goods. They said the figure was based on a calculation of the impact on the profits of U.S. companies that had been forced to hand over intellectual property as the price of doing business in China.

U.S. President Donald Trump holds his signed memorandum on intellectual property tariffs on high-tech goods from China, at the White House in Washington, U.S. March 22, 2018. REUTERS/Jonathan Ernst

There was no explanation of the difference between that figure and Trump’s $60 billion.

“Many of these areas are those where China has sought to acquire advantage

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