Trump ‘likely’ to announce new tariffs on $200 billion in Chinese imports

United States of America President Donald Trump is expected to announce a new tariff on about $200 billion in Chinese imports as early as on Monday, a senior administration told Reuters.

The tariff level will probably be about 10 per cent, the Wall Street Journal reported, quoting people familiar with the matter. This is below the 25 per cent the administration said it was considering for this possible round of tariffs.

The upcoming tariffs will be on numbers of items that included $200 billion worth of internet technology products and other electronics, printed circuit boards and consumer goods including Chinese seafood, furniture and lighting products, tires, chemicals, plastics, bicycles and car seats for babies. 

It is still not clear if the administration will be exempted any products that were on the list, which was announced in July.

On Friday, White House spokeswoman Lindsay Walters said Trump “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.”

According to the report, despite Treasury secretary Steven Mnuchin’s attempts to restart trade talks with China, US President already directed aides to proceed with tariffs. One observer in the business sector hopes, the administration may have reduced its planned tariff level after hearing numbers of comments. 

“He also hopes companies would not immediately hike prices for consumer goods to pass along the costs. Still, the additional tariffs could complicate trade talks with China expected later this month,” reported Reuters.

Trump has demanded that China to cut its $375 billion trade surplus with the United States, end policies aimed at acquiring US technologies and intellectual property and roll back high-tech industrial subsidies. These world’s two biggest countries appeared to be making progress on trade this week.

According to the report, the administrations have already levied duties on worth $50 billion Chinese goods after a study on China’s intellectual property released in the early of this year.

Last week,  US President Trump warned that he had further tariffs ready to go on $267 billion worth of Chinese imports beyond those that will be targeted this week. If all these tariffs invoked, total imports from China facing tariffs would exceed the $505 billion in goods that the United States imported from China last year.

According to US Census Bureau data,  imports from China through July increased by 9 per cent from the same period last year.

Also read: Donald Trump: India called, wants a trade deal with the US