Trump considers a 25% tariff on Chinese goods, up from 10%
Published 12:00 am Thursday, August 2, 2018
WASHINGTON, D.C. — President Donald Trump escalated his trade war with China on Wednesday, ordering his administration to consider more than doubling proposed tariffs on $200 billion worth of Chinese goods to 25 percent from 10 percent, as talks between Washington and Beijing remain at a standstill.
Trump instructed the U.S. trade representative to look into increasing tariffs on Chinese imports like fish, petroleum, chemicals, handbags and other goods to 25 percent, a significant step in a dispute that is beginning to take a toll on industries and consumers in both countries.
A final decision on the size and scope of the tariffs is not expected before September.
The potential for a 25 percent tax is being fueled by deep frustration within the Trump administration over its unsuccessful attempts to press China to change its trade practices, as well as by a sharp decline in the value of China’s currency.
Administration officials are concerned China may be manipulating prices of commodities like soybeans to harm American farmers, and hurting U.S. companies through regulatory practices — for example, detaining shipments of agricultural products in customs until they rot.
“We have been very clear about the specific changes China should undertake,” Robert Lighthizer, the U.S. trade representative, said in a statement Wednesday. “Regrettably, instead of changing its harmful behavior, China has illegally retaliated against U.S. workers, farmers, ranchers and businesses.”
In response to reports about the 25 percent tariffs, Geng Shuang, a spokesman for the Chinese Foreign Ministry, said at a briefing Wednesday in Beijing: “China’s position is firm and clear: Pressure and blackmail from the U.S. won’t work. If the U.S. takes a further and upgraded move, China would definitely retaliate to safeguard our legal rights.”