Trump Administration Threatens Even Higher Tariffs On China


In addition to the tariffs now in place, the Trump administration has proposed an additional 10 percent tariff on an additional $200 billion worth of imports from China.

The Chinese government warned that it would retaliate if the administration followed through with its new trade penalties.

Last month, the USA proposed 10 percent tariffs on another $200 billion in Chinese products, a response to China's retaliation.

The review of the higher tariff is a request from President Donald Trump, who wants China to change its trade practices.

The comment period on the proposal, which includes public hearings on the tariffs due to take place later this month, would be extended into September, the officials said.

"Regrettably, instead of changing its harmful behaviour, China has illegally retaliated against U.S. workers, farmers, ranchers and businesses", Lighthizer said in a statement.

The proposed tariff increase poses big risks for both the USA and global economy. And last week President Donald Trump announced a cease-fire in a potentially destructive dispute with the European Union over trade in cars, trucks and auto parts.

Then there is what China says and on Thursday, Beijing urged the United States to "calm down" and return to reason after news that Trump may hike the tariffs from 10% to 25%.

The proposed increase drew criticism from industry groups like the National Retail Federation, which said the move would ultimately hurt USA consumers.

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There have been no formal talks between Washington and Beijing for weeks over Trump's demands that China make fundamental changes to its policies on intellectual property protection, technology transfers and subsidies for high technology industries.

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.

"We hope that the trade policy makers in the U.S. will be cool-headed, listen to the voice of U.S. consumers and also pay attention to the voices in the global community", Wang said.

Stock markets edged up globally on Tuesday on a report that the United States and China were seeking to resume talks to defuse the budding trade war.

Among the 6,031 items on the most recent $200 billion list are 67 items on which the United States depends wholly on Chinese imports, the center said.

Canada's absence from this week's talks raised suspicions that the United States was pursuing a divide-and-conquer strategy with its two trading partners, isolating Canada to pressure it into agreeing with whatever the USA and Mexico came up with.

The Chinese have already proposed buying more US goods in order to settle the dispute, only to have the White House-which wants to win a broader argument about intellectual property and subsidies-reject the proposal.

Chinese equities and the yuan extended losses Wednesday afternoon, gaining downward momentum as concern over possible higher US tariffs overwhelmed optimism about Beijing's pledge to support economic growth.