Trump ups trade war, imposes $200bn tariff on Chinese goods

‘OPEN TO NEGOTIATIONS’ US prez calls on Xi to resolve dispute, consumer electronics escape additional levies

WASHINGTON: President Donald Trump on Monday announced that the US will impose tariffs on $200 billion worth of Chinese goods starting next week, threatening additional levies if Beijing did not change what he called its “unfair trade practices”.

The tariffs will start at 10%, beginning September 24, and then rise to 25% on January 1.

Trump has already imposed 25% tariffs on $50 billion in Chinese goods, and on Monday he warned that if China retaliates, he plans to target an additional $267 billion worth of goods.

That would cover nearly everything China sells the US.

“For months, we have urged China to change these unfair practices, and give fair and reciprocal treatment to American companies,” Trump said in a statement. “But, so far, China has been unwilling to change its practices.”

He added: “If China takes retaliatory action against our farmers or other industries, we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports.”

However, the US list skipped consumer electronics like smartwatches and Bluetooth devices, like Apple watches, AirPods and Fitbit’s devices, which are made in China. The Consumer Technology Association, which represents some 2,000 large and small firms in the tech sector, called the tariffs “bad policy”. “We are especially concerned about retaliatory tariffs on printed circuit assemblies, routers and networking equipment,” said CTA president Gary Shapiro.

In a tweet on Tuesday, he accused China of trying to “impact and change our election” by directing retaliatory measures against “our farmers, ranchers and industrial workers because of their loyalty to me”.

Trump’s announcement comes just days after treasury secretary Steve Mnuchin sent an invitation to China to resume trade negotiations that had been left inconclusive at the last round. Beijing has received the invitation but there was no word if it plans to accept it.

Buoyed by a strong economy, Trump is confident he has the upper hand in this dispute and wants to force China to a deal. But his own options are narrowing as the impact of retaliatory measures begins to spread from farmers and other manufacture to consumers.

China has also designed its retaliatory measures to hurt Trump’s political base in the hope that they will force the US president to back down.

But he is holding out the offer of talks, with a personal appeal to President Xi Jinping. “Hopefully, this trade situation will be resolved, in the end, by myself and President Xi of China, for whom I have great respect and affection,” Trump said.