Trump turning up heat on China

THE Trump administration will impose new tariffs on $200 billion worth of Chinese goods starting next week, escalating a trade war between the world’s two biggest economies and potentially raising prices on goods ranging from handbags to bicycle tyres.

The tariffs will start at 10 per cent, beginning on Monday of next week, and then rise to 25 per cent on January 1.

President Donald Trump made the announcement on Monday in a move that is sure to ratchet up hostilities between Washington and Beijing.

Mr Trump has already imposed 25 per cent tariffs on $50 billion in Chinese goods. And China has retaliated in kind, hitting American soybeans, among other goods, in a shot at the president’s supporters in the US farm belt.

Beijing has warned it would hit an additional $60 billion in American goods if Mr Trump ordered more tariffs. If China does retaliate, Mr Trump threatened on Monday to add a further $267 billion in Chinese imports to the target list. That would raise the total to $517 billion – covering nearly everything China sells the US.

After a public comment period, the administration said on Monday it had withdrawn some items from its preliminary list of $200 billion in Chinese imports to be taxed, including child-safety products like bicycle helmets.

And in a victory for Apple and its American customers, the administration removed smart watches and some other consumer electronics products from the list of goods to be targeted by the new tariffs.

At the same time, the administration said it remained open to negotiations with China.

“China has had many opportunities to fully address our concerns,” Mr Trump said. “I urge China’s leaders to take swift action to end their country’s unfair trade practices.”

The two countries are fighting over Beijing’s ambitions to supplant American technological supremacy.

By expanding the tariff list to $200 billion of Chinese imports, Mr Trump risks spreading the pain to ordinary households.

The administration is targeting a bewildering variety of products – from salmon to baseball gloves – forcing US companies to scramble for suppliers outside China, absorb the import taxes or pass along the cost to their customers.

I URGE CHINA’S LEADERS TO TAKE SWIFT ACTION TO END THEIR COUNTRY’S UNFAIR TRADE PRACTICES US PRESIDENT DONALD TRUMP