USA considers hiking China tariffs to 25 percent

Share
USA considers hiking China tariffs to 25 percent

Last month, Washington and Beijing imposed a first round of 25 percent tariffs on 34 billion dollars worth of each other's goods.

Trump set his sights on China during the 2016 presidential campaign and has followed through during his presidency with a protectionist strategy that he says is aimed at strengthening US companies and boosting jobs at home.

"These [10%] duties, if applied, would cause disproportionate economic harm to United States interests", he stressed in testimony to USA trade officials, adding that any escalation would be catastrophic for U.S. companies.

"The US side has repeatedly escalated the situation against the interests of both enterprises and consumers", the Chinese Commerce Ministry said in its statement.

Trump believes that the gulf between how much China exports to the United States and how much the United States exports to China reflects unfair trade practices, which he has vowed to address through penalties on imports and a range of other measures.

A second round of tariffs on products worth $16 billion could take effect as soon as this week.

Last month, Trump threatened to impose tariffs on all goods imported from China.

"I need to stress that dialogues must be conducted on the basis of mutual respect and equality", he said.

China immediately vowed to retaliate though at the same time urged the U.S. to act rationally and return to talks to resolve the dispute.

'If we're going to use tariffs, this gives us more flexibility and it's a more meaningful threat,' he said, adding that Trump's pressure strategy will not work if he does not resolve trade disputes with USA allies such as the European Union, Mexico and Canada.

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 trillion dollars of goods - roughly the total amount of US imports from China previous year.

The 25% tariffs would apply to the same products proposed in July. Beijing immediately responded with its own tariffs on equal amount of U.S. goods.

According to the Petersen Institute of International Economics, more than 90% of the products on the United States tariffs list are made up of intermediate inputs or capital equipment.

Trump initially proposed 10 per cent tariffs on an additional $200 billion of Chinese imports, but he told trade officials this week to consider raising that to 25 per cent.

Chinese Foreign Ministry Spokesperson Geng Shuang said on Thursday that China will advise the U.S. to change its attitude, stop making false accusations, and return to the land of reason.

US manufacturers have reported a broad-based upturn in business activity in recent months, while consumer confidence is close to multi-decade highs.

But Trump's tariffs have drawn criticism at home in the United States for driving up costs for consumers and companies that rely on Chinese imports.

The Trump administration ratcheted up pressure for trade concessions from Beijing this week by proposing a higher 25 per cent tariff on $200 billion worth of Chinese imports.

Share

Advertisement

Related Posts

NASA assigns astronauts to SpaceX, Boeing test flights
And finally, the second SpaceX demo flight will be crewed by Bob Behnken and Doug Hurley . Just as in the past, all human launches will originate here on the space coast.

Fortnite Mobile Won't Be Available on Google Play Store, EPIC Reveals Why
This stands in contrast to the iOS version of Fortnite , which is available to download right from Apple's App Store. Epic Games has made a decision to not distribute the game through the Google Play Store for financial reasons.

Apple Makes History As The World's First $1 Trillion Company
While Apple is the first company to hit the trillion dollar mark, it is likely to be followed by Alphabet , Amazon and Microsoft. Apple is the first US company to hit the $1T milestone; here's why AAPL shares can climb even higher.

Turkey vows to hit back against sanctions over preacher's arrest
The meeting came on the sidelines of the Association of Southeast Asian Nations (ASEAN) foreign ministers' meeting. Cavusoglu said the ministers had discussed steps both countries could take to solve the existing problems.

Australia supermarket bagged after plastic backflip
In a message to the retailer's 115,000 staff on Thursday, Mr Durkan said the ban on single-use plastic bags had been a "big and difficult" change for customers.

Missing student's mother pleads with potential abductor
Police have ruled out Mollie Tibbett's boyfriend , Dalton Jack, as a possible suspect. Mollie was dog sitting alone at a home in Brooklyn, Iowa, when she disappeared .

Trump EPA to Roll Back Back Obama-Era Gas Mileage Standards
Reforming Corporate Average Fuel Economy (CAFE) standards is a huge tax cut for American auto buyers, up to a $7,200 per vehicle. The states that have adopted California's emission rules together make up about one third of the US auto market.

Apple Becomes World's 1st Private-Sector Company Worth $1 Trillion
Virtual assistant Siri is built into Apple devices, and the company boasts the most popular smart watch on the market. Apple's previous quarter was equally bullish with Cook reporting the firm's "best March quarter ever".

This is the Samsung Galaxy Note 9
It also mentions the Note's "all day battery", which it focused on in a teaser video last week. The phone will be able to hold up to 1TB of storage, thanks to a microSD slot.

Lady Gaga calls for compassion after co-star's death
Genest was now working with former Rob Zombie guitarist Mike Riggs on a new album. In 2011 Genest appeared in Lady Gaga's Born This Way music video .

© 2015 ExpressNewsline. All Rights reserved.