US considers higher tariffs on $200 billion in Chinese imports

WASHINGTON: The Trump administration is considering more than doubling its planned tariffs on $200 billion in Chinese imports, ratcheting up pressure on Beijing to return to the negotiating table, three people familiar with the internal deliberations said.

The US imposed 25 per cent tariffs on $34 billion of Chinese products in early July, and the review period on another $16 billion of imports ended July 31. President Donald Trump had threatened an additional $200 billion with levies of 10 per cent, a level the administration may raise to 25 per cent in a Federal Register notice in coming days, one of the people said.

At the same time, representatives of US Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He are having private conversations as they look for ways to reengage in negotiations, according to people who spoke about the deliberations on condition of anonymity.

Holding an open door to talks while threatening worse consequences represents yet another increase in tension in
the months-long standoff between the world’s two largest economies over trade. While the conflict nominally centers around the US’s $375 billion annual goods trade deficit with China, it has morphed into a chapter in the nations’ broader strategic rivalry.

President Donald Trump’s administration said on July 10 it would seek to impose the 10 per cent tariffs on thousands of Chinese imports.

They include food products, chemicals, steel and aluminum and consumer goods ranging from dog food, furniture and
carpets to car tires, bicycles, baseball gloves and beauty products.

While the tariffs would not be imposed until after a period of public comment, raising the proposed level to 25 per cent could escalate the trade dispute between the world’s two biggest economies.
Investors fear an escalating trade war between Washington and Beijing could hit global growth, and prominent US business groups have condemned Trump’s aggressive tariffs.

Stock markets edged up globally on Tuesday on a report that the United States and China were seeking to resume talks to defuse the budding trade war.

In early July, the US government imposed 25 per cent tariffs on an initial $34 billion of Chinese imports. Beijing retaliated with matching tariffs on the same amount of US exports to China.
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 billion dollars of goods – roughly the total amount of US imports from China last year.

The $200 billion list of goods targeted for tariffs — which also include Chinese tilapia fish, printed circuit boards and lighting products — would have a bigger impact on consumers than previous rounds of tariffs.
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