‘Trump to back $200 bn China tariffs next week’
WASHINGTON: President Donald Trump wants to move ahead with a plan to impose tariffs on $200 billion in Chinese imports as soon as a public-comment period concludes next week, according to six people familiar with the matter.
Asked to confirm the plan in an interview with Bloomberg News in the Oval Office on Thursday, Trump smiled and said it was “not totally wrong.” He also criticized management of the yuan, saying China has devalued its currency i n response to a recent slowdown in economic growth.
Companies and members of the public have until September 6 to submit comments on the proposed duties, which cover everything from selfie sticks to semiconductors.
The president plans to impose the tariffs once that deadline passes, according to the people familiar with the matter, who spoke on condition of anonymity because the discussions aren’t public.
Broadening the tariff battle would mark the most significant move yet in a months-long trade standoff and dent China’s growth prospects. Data released on Friday will allay some concerns over the near-term outlook as China’s official factory gauge unexpectedly strengthened this month following government measures to underpin demand.
“China is more prepared, mentally, this time than it was for the previous round of tariffs,” said Gai Xinzhe, an analyst at the Bank of China’s Institute of International Finance in Beijing.
“The scale is enormous and once the tariffs materialize, they will definitely send jitters through financial markets.”
Such unease was already on display Friday with Asian and European stocks declining, and and U.S. equity futures pointed to a dip at the open. The yen held on to gains, while the Bloomberg Dollar Spot Index drifted. The tariff news exacerbated already fragile market sentiment amid currency routs in Argentina and Turkey.
Some of the people cautioned that Trump hasn’t made his final decision, and it’s possible the administration may enact the duties in installments. The U.S. has so far imposed levies on $50 billion in Chinese goods, with Beijing retaliating in kind.
It’s also possible the president could announce the tariffs next week, but say they will take effect at a later date.