Trump is getting ready to more than double his proposed tariffs on $200 billion of Chinese goods, further escalating his trade war
- Donald Trump's administration is ready to increase proposed tariffs on $200 billion of Chinese goods.
- Previously Trump had threatened 10% tariffs on these goods, but is expected to increase that to 25%.
- The move is thought to be a negotiating tactic aimed at gaining important concessions from the Chinese government.
- So far, tariffs on $34 billion of largely industrial goods have been imposed on China.
After a handful of quiet days in US President Donald Trump's trade war, it looks like a further escalation may be on its way following reports that another round of tariffs on China could be announced imminently.
According to Bloomberg, the Trump administration is considering levying tariffs of 25% on $200 billion of Chinese imports into the USA, in a move that would inevitably deepen tensions between the two nations. Previously Trump had threatened 10% tariffs on this tranche of imports.
Citing three sources familiar with the plans, Bloomberg said the US is making the threats about 25% tariffs as a means of getting the Chinese government to enter into negotiations to deescalate the conflict, which has so far seen tit-for-tat tariff impositions of tariffs, largely on industrial goods.
The increased tariff levels could be announced in a Federal Register notice in the next few days, one of Bloomberg's sources said. That could be as soon as Wednesday, they added.
As it stands, the US has placed 25% tariffs on around $34 billion of Chinese goods, and has just finished consulting on another set to be imposed on goods worth $16 billion.
Goods already affected by Trump's tariffs against China include batteries, trains, and ball bearings, but they could extend to more consumer goods if further tariffs are imposed. You can see a full list of goods subject to tariffs here .
However, in addition to the the threat of 25% tariffs on $200 billion of goods, Trump has also explicitly signaled his readiness to "go to 500" - meaning that he is prepared to put tariffs on all $505 billion of goods coming from China to the USA.
"I'm not doing this for politics - I'm doing this to do the right thing for our country," he told CNBC during the interview in which he made the threat. "We have been ripped off by China for a long time."
Reports of Trump's willingness to increase tariffs in China come as Chinese officials criticised the US for failing to fulfill the obligations it agreed upon in previous discussions over trade.
"China and the U.S. have had several rounds of consultations and reached important consensus, but regrettably the U.S. did not fulfill its obligations. Nor did it make concerted efforts with China," Wang Yi, the country's foreign minister said on Monday.
Things look better for Europe
As the Trump administration ratchets up its threats to China about rising tariffs, the worst of its conflict with the European Union over trade appears to be over, after last week Trump climbed down on imposing tariffs on EU autos imported to the US.
During a meeting in Washington DC last Wednesday, Trump and European Commission head Jean-Claude Juncker agreed to the beginnings of a deal that would end tensions between the two parties.
"This was a very big day for free and fair trade,"Trump said in a press conference after the pair's meeting.
In the meeting, the EU agreed to import more American soybeans and liquefied natural gas. Both sides will work to decrease industrial tariffs and adjust regulations to allow US medical devices to be traded more easily in European markets.