WASHINGTON: The Trump administration is considering more than doubling its planned tariffs on $200 billion in
Chinese imports, ratcheting up pressure on Beijing to return to the negotiating table, three people familiar with the internal deliberations said.
The US imposed 25 per cent tariffs on $34 billion of Chinese products in early July, and the review period on another $16 billion of imports ended July 31. President
Donald Trump had threatened an additional $200 billion with levies of 10 per cent, a level the administration may raise to 25 per cent in a Federal Register notice in coming days, one of the people said.
At the same time, representatives of US Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He are having private conversations as they look for ways to reengage in negotiations, according to people who spoke about the deliberations on condition of anonymity.
Holding an open door to talks while threatening worse consequences represents yet another increase in tension in the months-long standoff between the world’s two largest economies over trade. While the conflict nominally centers around the US’s $375 billion annual goods
trade deficit with China, it has morphed into a chapter in the nations’ broader strategic rivalry.
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 aluminum and consumer goods ranging from dog food, furniture and carpets to car tires, 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.
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.
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.
In early July, the US government imposed 25 per cent tariffs on an initial $34 billion of Chinese imports. Beijing retaliated with matching tariffs on the same amount of US exports to China.
Washington is preparing to also impose tariffs on an extra $16 billion of goods in coming weeks, and Trump has warned he may ultimately put them on over half a billion dollars of goods - roughly the total amount of US imports from China last year.
The $200 billion list of goods targeted for tariffs — which also include Chinese tilapia fish, printed circuit boards and lighting products — would have a bigger impact on consumers than previous rounds of tariffs.
Erin Ennis, senior vice president of the US China Business Council, said a 10 per cent tariff on these products is already problematic, but more than doubling that to 25 per cent would be much worse.
“Given the scope of the products covered, about half of all imports from China are facing tariffs, including consumer goods,” Ennis said. “The cost increases will be passed on to customers, so it will affect most Americans pocketbooks.”
Trump had said he would implement the $200 billion round as punishment for China’s retaliation against the initial tariffs aimed at forcing change in China’s joint venture, technology transfer and other trade-related policies.
He also has threatened a further round of tariffs on $300 billion of Chinese goods. The combined total of over $500 billion of goods would cover virtually all Chinese imports into the United States.
