Breaking News

Trump set to impose tariffs on $200 billion in Chinese goods

US President Donald Trump has decided to impose tariffs on some $200 billion in Chinese goods, a decision that sources within his administration say he will make public in the coming days.

The new tariffs, part of the Trump administration’s growing trade war with China, will be applied to more than 1,000 imported Chinese products, the Washington Post reported Sunday, citing two people briefed on the decision.

The tariffs could reach 25 percent for some products although Trump has ordered his team to start with a 10-percent increase.

If true, Trump’s import penalties would go on to include over half of America’s roughly $500-billion imports from China.

Washington recently imposed tariffs on $50 billion worth of imports from China, mostly equipment and material used by manufacturers.

Trump said earlier this month that he was ready to put tariffs on virtually all Chinese imports if Beijing did not back down and took steps to reduce its $335 billion bilateral trade surplus with the US.

The number is expected to increase this year as the US ran a $233.5 billion deficit in trade with China during the first seven months of the year, an 8-percent increase compared to the same period last year.

The new escalation by Trump is guaranteed to drive up US prices ahead of the holiday shopping season but it is not yet clear to what extent, the Post wrote.

Apple has warned that a variety of its best-selling electronic gadgets and their accessories will be caught in the tariff war.

Trump has repeatedly blamed unfair trade deals with low-wage countries like China and Mexico as the main reason behind the widespread offshoring of manufacturing by US companies.

This, the American head of state argues, has led to massive trade deficits and the loss of high-paying American manufacturing jobs.

He has also accused Beijing of blocking US investment and stealing US intellectual property.

“The President has been clear that he and his administration will continue to take action to address China’s unfair trade practices. We encourage China to address the long standing concerns raised by the United States,” White House spokeswoman Lindsay Walters said Friday.

In response, China has implemented 25 percent import taxes on $50 billion worth of US goods and pledged to retaliate similar moves in future.

The two sides have been trying to resolve the issue through direct talks to no avail.

Advertisements