US$200 HIGHERBU.S. CHINA TARIFFS GOODS? ON

Trump administration increasing pressure on Beijing to re-engage in talks, say sources

THE Trump administration is considering more than doubling its planned tariffs on US$200 billion (RM814 billion) in Chinese imports, ratcheting up pressure on Beijing to return to the negotiating table, said three people familiar with the internal deliberations.

The United States imposed 25 per cent tariffs on US$34 billion of Chinese products in early last month, and the review period on another US$16 billion of imports ended yesterday.

President Donald Trump had threatened an additional US$200 billion with levies of 10 per cent, a level the administration might raise to 25 per cent in a Federal Register notice in coming days, said one of the people.

At the same time, representatives of US Treasury Secretary Steven Mnuchin and Chinese vicepremier Liu He were having private conversations as they looked for ways to re-engage in negotiations, said the people.

Holding an open door to talks while threatening worse consequences represents yet another increase in tension in the standoff between the two largest economies over trade.

While the conflict nominally centres around the US’ US$375 billion annual goods trade deficit with China, it has morphed into a chapter in the nations’ broader strategic rivalry.

In a sign the trade standoff is reverberating through Chinese politics, the politburo signalled on Tuesday that policymakers would focus more on supporting economic growth amid risks from a campaign to reduce debt and the dispute with Trump.

In Beijing, China foreign ministry spokesman Geng Shuang said yesterday “blackmail and pressure from the US side will never work on China”.

“If the US takes measures to further escalate this situation, we will surely take counter-measures to firmly uphold our legitimate rights and interests,” he told a regular briefing.