Published: Mon, May 06, 2019
Worldwide | By Lisa Hogan

U.S. to Impose Higher Tariffs on Chinese Exports

U.S. to Impose Higher Tariffs on Chinese Exports

For the better part of the previous year, the USA has levied a 25% tariffs on $50 billion worth of Chinese high tech imports, and 10% tariffs on $200 billion of other goods. Trump and Chinese President Xi Jinping had agreed last December to forestall new tariffs while the talks were going on, but it was not clear how Trump's announcement would affect the negotiations, set to resume in Washington on Wednesday.

Trump said on Twitter that tariffs will increase to 25 per cent on Friday and that more Chinese goods will face additional tariffs.

"The 10% will go up to 25% on Friday, he added".

The United States first imposed tariffs on $50 billion worth of Chinese goods as a punitive measure.

As recently as last week, the USA had depicted the trade talks as going smoothly.

In the announcement on Twitter, Trump said that talks to secure a trade deal with China are continuing, but are moving "too slowly".

Trump says he wants to cut the massive U.S. trade deficit with China, which in 2018 totaled $378.73 billion if trade in services is included.

Besides a greater opening of the Chinese market to U.S. goods, Trump is pressing for structural changes such as Beijing ending its practice of forcing United States companies that operate in China to share their technology.

Trump launched the trade war in July, after an investigation by his trade officials concluded that China routinely abuses the intellectual-property rights of American companies.

Under the Trump administration, the United States increased tariffs on roughly half of its imports from China past year, while China retaliated with tariffs on more than 70 per cent of its imports from the United States, according to tracking by Chad Bown, a senior fellow at the Peterson Institute for International Economics.

Chinese Vice Premier Liu He was due to travel to Washington for talks this week after a round last week in Beijing that Treasury Secretary Steven Mnuchin called "productive".

Trump's shift-coming after weeks of encouraging talk that raised expectations that the two sides were inching toward a deal-threw into doubt the status of negotiations. Some of the main issues remaining include an enforcement mechanism to police the agreement and a decision over whether tariffs will be removed or stay in place, according to the people, who spoke on the condition of anonymity.

He'd twice pushed back deadlines - in January and March - to raise the tariffs in a bid to buy more time for a negotiated settlement.

The Trump administration hiked tariffs on about half of its imports from China a year ago, while Beijing retaliated with tariffs on more than 70% of its imports from America, according to tracking by Chad Bown, a senior fellow at the Peterson Institute for International Economics.

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