Donald Trump may up stakes in US-China trade war by raising tariffs on US$200 billion worth of goods
US President considers plan to raise tariffs on wide range of imports from 10 per cent to 25 per cent
The Trump administration plans to propose slapping a 25 per cent tariff on US$200 billion of imported Chinese goods after initially setting them at 10 per cent, in a bid to pressure Beijing into making trade concessions, a source familiar with the plan said on Tuesday.
President Donald Trump’s administration said on July 10 it would seek to impose the 10 per cent tariffs on thousands of Chinese imports.
They include food products, chemicals, steel and aluminium and consumer goods ranging from dog food, furniture and carpets to car tyres, bicycles, baseball gloves and beauty products.
While the tariffs would not be imposed until after a period of public comment, raising the proposed level to 25 per cent could escalate the trade dispute between the world’s two biggest economies.
The source said the Trump administration could announce the tougher proposal as early as Wednesday. The plan to more than double the tariff rate was first reported by Bloomberg News.
There was no immediate reaction from the Chinese government.
In July it accused the United States of bullying and warned it would hit back.
Investors fear an escalating trade war between Washington and Beijing could hit global growth, and prominent US business groups have condemned Trump’s aggressive tariffs.