Trump could raise tariffs further on Chinese goods


Trump could raise tariffs further on Chinese goods

Andrew Cummings
August 3, 2018

Robert Lighthizer said Mr Trump directed the increase because China refused to meet U.S. demands and has imposed retaliatory tariffs on USA goods.

The U.S. has already imposed 25 percent tariffs on $34 billion in Chinese imports and is readying 25 percent tariffs on another $16 billion worth to punish China for allegedly using predatory tactics to obtain U.S. technology.

The bill has started to mount, with the USA government dipping into its coffers to find $12 billion to aid farmers who have been hit by Chinese retaliation.

Wednesday's move means when the latest tariffs have been introduced, the White House will have imposed levies on more than $250 billion of Chinese exports to the USA, although it has threatened to target the full $500 billion of goods that China exports to America each year.

"It violates the promises of the administration of US President Donald Trump that a trade war with China will not damage (the nation's) own people", he told ftchinese.com.


Raising the proposed tax rate on those goods means extending the deadline for public comment on the plan from August 30 to September 5.

"The U.S.is playing a carrot-and-stick tactic on China, but this approach is not going to work on China", the ministry said. Beijing immediately imposed retaliatory levies in the same amount on United States imports.

Whether or not President Trump understands that the policies he has so far enacted will on balance explode the trade deficit is tough to say.

It is also interesting how China intends to respond to the expansion of duties up to $200 billion.

Washington and Beijing are locked in battle over American accusations that China's export economy benefits from unfair policies and subsidies, as well as theft of American technological know-how.


Offshore yuan dropped to a 15-month low on Friday morning as the US-China trade war escalates, with traders projecting the Chinese currency to slip further through the year.

U.S. pressure and blackmail on trade won't work. But President Trump has done just the opposite, signing a large corporate tax cut that makes foreign investment in the USA more attractive, while forcing Congress to scale back its plans to place more restrictions on Chinese investment in the United States.

Tariffs on another $16bn of products are pending, the second part of tariffs on $50bn worth of imports that the United States announced in March.

The proposal would require a more robust justification from the Department of Defense for "Section 232" tariffs such as those imposed on steel and aluminum imports and those now under consideration for autos.


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