The Trump administration is imposing tariffs on $200 billion more of Chinese goods starting next week, escalating a trade war between the world’s two biggest economies and raising prices on a range of consumer goods.
A previous $50 billion round of tariffs imposed on Chinese imports largely affected products used by American manufacturers in producing goods.
In a statement, the USA president said further tariffs worth $267bn (£203bn) will be placed on Chinese imports if Beijing takes “retaliatory action against our farmers or other industries”.
Earlier yesterday Mr Trump claimed that the consequences of the global trade…
Trump has also complained about America’s gaping trade deficit – $336 billion previous year – with China, its biggest trading partner.
“President Trump’s decision to impose an additional $200 billion is reckless and will create lasting harm to communities across the country”, said Dean Garfield, president of the Information Technology Industry Council, which represents major tech firms.
“For months, we have urged China to change these unfair practices and give fair and reciprocal treatment to American companies”, Trump said in a statement.
Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., September 11, 2018.
Multiple media reports in recent days cite officials saying Trump had chose to press ahead with tariffs on $200 billion in goods as soon as Monday.
Other officials who advise the country’s leaders are suggesting China impose limits on the sale of parts and supplies needed by US businesses, using “export restraints” to threaten their supply chains.
“Given the diametrically opposing views Washington and Beijing have of their problems, this trade war is unlikely to get better before it gets worse – for them, or for any of us”.
The US has already imposed tariffs on $50bn (£38bn) on Chinese imports.
‘Only knowing the pain of fighting will stop the war and cause (the United States) to negotiate seriously, ‘ said Lou.
Some products – such as smart watches, Bluetooth devices, bike helmets, high chairs and play pens – were exempted from the tariffs after lobbying from companies including tech giant Apple and the chemical industry.
“Right after close of business, we’ll be announcing something”, Trump told reporters at the White House.
The Chinese are expected to retaliate with commensurate tariffs on $60 billion in USA goods, and may withhold vital raw materials to United States firms.
Trump initiated the fight to punish Beijing for what he says are China’s predatory tactics to try to supplant USA technological supremacy.
They also say U.S. economic growth and inflation are likely to have peaked this year, which could help to further turn the tide of market sentiment against the Dollar over coming months. US Treasury Secretary Steven Mnuchin last week invited top Chinese officials to a new round of talks, but thus far nothing has been scheduled.
Canada and Mexico, members of the North American Free Trade Agreement (NAFTA) with the USA, have imposed their own counter-tariffs on United States goods after Washington’s steel and aluminum duties took effect.
“Our concern with these tariffs is that the United States will be hardest hit, and that will result in lower USA growth and competitiveness and higher prices for U.S. consumers”, Apple said in a letter commenting on the proposal. China imposed about billion in retaliatory import charges.
Trump said China had refused to change the unfair practices that hurt U.S. businesses and workers.