Trump to impose 10% tariff on $300 billion of Chinese Goods

 

The U.S.-China trade war intensified on 1 August after President Donald Trump threatened to impose an additional 10 percent tariff on some Chinese products from smartphones to clothing.

Trump said it one day after the two superpowers agreed to continue trade talks next month. The new tariffs, due to take effect on 1 September, effectively tax all Chinese imports to the US.

“Adding tariffs is definitely not a constructive way to resolve economic and trade frictions, it’s not the correct way,” Wang said BBC on the sidelines of a meeting of South East Asian Ministers in Bangkok.

Trump announced the tariff plan on Twitter, while taking aim at China for not honoring promises to buy more US agricultural products at this week’s negotiations in Shanghai.

In later remarks, the US President told the 10% tariff was a short-term measure and that tariffs could be lifted further in stages to more than 25%.

“Somebody should have done this with China a long time ago,” he added.

Trump suggested the negotiations had gone badly, with China failing to follow through on its pledges to buy more US farm products and restrict the flow of fentanyl to America.

“The US will start, on September 1, putting a small additional Tariff of 10% on the remaining 300 billion dollars of goods and products coming from China into our country. This does not include the 250 billion dollars already Tariffed at 25%,” Trump said.

“We look forward to continuing our positive dialogue with China on a comprehensive Trade Deal, and feel that the future between our two countries will be a very bright one!” he added.

Later in the day, before departing for a rally in Ohio, Trump said he might raise tariffs even more.

The ramp-up in the trade conflict was particularly jarring because it coincided with growing fears of a global economic slowdown driven by commercial tensions. On 31 July, the Federal Reserve cut its main interest rate by 25 basis points to protect the US economy from the uncertainty deriving from trade tensions.

 

 

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