Trump to raise tariffs on $200bn of Chinese goods

Trump to raise tariffs on $200bn of Chinese goods

Trump to raise tariffs on $200bn of Chinese goods

Mr Trump delayed further tariff increases earlier in the year, citing progress in talks. The president has continually said America is getting the short end of the stick when it comes to our trade agreements with China.

The U.S. now charges a 10 percent duty on those goods.

"More likely, in our view, is that this renewed threat is an attempt to extract a few more minor concessions in the final days of talks".

Trump also said on Sunday that tariffs paid by China "are partially responsible for our great economic results", although it is companies that import Chinese goods, not China itself, that pay the bulk of the additional costs.

Trump's move is a reversal of his decision in February not to increase tariffs from 10 per cent to 25 per cent on $200 billion of goods, thanks to progress in the trade talks.

As recently as last week, the United States had depicted the trade talks as going well.

"The Tariffs paid to the U.S. have had little impact on product cost, mostly borne by China". Mr. Trump's comments, delivered on Twitter, came as a Chinese delegation was scheduled to resume talks in Washington on Wednesday aimed at resolving a trade war that has shaken financial markets and cast gloom over the world economy.

But a March study by economists from the Federal Reserve Bank of New York, Columbia University, and Princeton University found that the burden of Mr. Trump's tariffs - including taxes on steel, aluminum, solar panels, and Chinese imports - falls entirely on US consumers and businesses who buy imported products.

It is understood that key sticking points include how to police any deal, and whether existing tariffs will be removed or stay in place. He has railed against America's trade deficit in goods China, which swelled previous year to record $419 billion. But Trump and Chinese leader Xi Jinping agreed to a truce in December to refrain from further escalation.

Fears about a further escalation caused a slump in world stock markets towards the end of previous year.

Trump is also demanding that China halt theft of intellectual property and subsidies to state-owned companies.

In recent days, USA officials grew frustrated with some of China's backpedaling on some of their earlier commitments, including on the crucial matter of technology transfer, two people familiar with the situation said.

Trump has repeatedly blamed what he sees as China's unfair trade practices for the hollowing out of the USA manufacturing sector.

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