USA threatens raising tariffs to 25% on $200bn of Chinese goods

USA threatens raising tariffs to 25% on $200bn of Chinese goods

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

U.S. President Donald Trump's administration is proposing a tariff rate increase on $200 billion worth of Chinese goods to 25 percent from 10 percent as the two countries continue conversations to determine whether trade talks can be resumed, senior Trump administration officials said on Wednesday.

Asked about communication between the two countries on the dispute, Geng said China had "always upheld using dialogue and consultations to handle trade frictions", but that dialogue must be based on mutual respect and equality. "It will only hurt themselves".

Earlier this week, the White House said it was considering boosting tariffs on $200 billion worth of Chinese goods, raising those tariffs to 25 percent from 10 percent.

The move, which is not finalized and could change, according to the source, comes as the United States and China remain locked in a trade war. "Regrettably, instead of changing its harmful behavior, China has illegally retaliated against USA workers, farmers, ranchers and businesses", Lighthizer said.

Trump has launched an aggressive trade agenda this year, threatening several countries with high tariffs if they don't purchase more US products or allow more USA investment in their countries. "But I wouldn't draw the conclusion that the announcement we're making today is directly linked to any one practice".

China has announced plans to put tariffs of up to 25% on U.S. products worth $60 billion, the latest salvo in an escalating trade war.

The U.S. imported $505 billion worth of Chinese goods in 2017 while China imported $130 billion worth of American products, according to the Commerce Department.

The Chinese Commerce Ministry said in a statement it could add duties of 5, 10, 20 or 25 percent on 5,207 types of US imports, while warning it could adopt further countermeasures at any time.

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Pastor Andrew Brunson, a North Carolina native who was pastor of a Presbyterian church in Turkey, was arrested in 2016.

The move came after China retaliated against tariffs Trump had initially imposed on $34 billion in Chinese imports to the U.S.

The 25% tariffs would apply to the same products proposed in July.

With the comment period extended, tariffs at the earliest would go into effect September 6, allowing companies some time to adjust.

Camuñez notes that the Trump administration has given mixed signals about how tough it's willing to be with China, and that has complicated efforts to resolve the conflict.

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.

U.S. President Donald Trump attends a meeting with inner city pastors at the Cabinet Room of the White House in Washington D.C., U.S., August 1, 2018.

"It's hard to see how this action lends itself towards a resolution to what is increasingly a trade crisis", he told AFP.

The duties could take effect after the administration draws up its revised, final list of imports following a public comment period.

But Fred Bergsten, founding director of the Peterson Institute for International Economics, told CNBC that China would be able to absorb blows more easily than Washington. They better not assume anything ...

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