President escalates China trade war with new tariffs

DONALD TRUMP last night announced tariffs on $200 bn worth of Chinese goods, escalating to new heights a trade war between the world’s two largest economies. The new tariffs were being imposed on nearly 40 per cent of goods China sells to the US.

American consumers were expected to see higher prices for items ranging from handbags to furniture, bicycle tyres and air conditioning units.

Mr Trump said tariffs will start at 10 per cent on September 24 and rise to 25 per cent at the start of 2019.

The US had already previously imposed tariffs on $50 bn worth of Chinese imports. China has said it is ready to impose retaliatory tariffs on US goods. Among the products spared from tariffs by Mr Trump were Apple watches and baby car seats. But he warned that, if China retaliates, he would impose further tariffs on another $267 bn of Chinese imports. That would mean tariffs on virtually all Chinese goods.

Mr Trump said his latest decision came after an investigation found China “is engaged in numerous unfair policies and practices relating to US technology and intellectual property”.

Mr Trump said: “It is my duty to protect the interests of working men and women, farmers, ranchers, businesses, and our country itself. My administration will not remain idle when those interests are under attack. China has had many opportunities to fully address our concerns. Once again, I urge China’s leaders to take swift action to end their country’s unfair trade practices.”