Trump imposes more tariffs on Chinese goods
President Donald Trump, emboldened by America’s economic strength and China’s economic slowdown, escalated his trade dispute Monday, saying the U.S. would impose tariffs on $200 billion worth of Chinese goods and was prepared to tax all Chinese imports if Beijing dared to retaliate.
Mr. Trump, in a statement released late Monday, showed no sign of backing down from the type of fullblown trade war between the world’s two largest economies that has rattled financial markets, saying he was prepared to “immediately” place tariffs on another $267 billion worth of imports “if China takes retaliatory action against our farmers or other industries.”
The next wave of tariffs on $200 billion worth of products are in addition to the $50 billion worth taxed earlier this year, meaning nearly half of all Chinese imports into the U.S. will soon face levies. The tariffs, which are scheduled to go into effect Sept. 24, will start at a rate of 10 percent before climbing to 25 percent Jan. 1. The timing will partially reduce the toll of price increases for holiday shoppers buying Chinese imports in the coming months.
“For months, we have urged China to change these unfair practices, and give fair and reciprocal treatment to American companies,” Mr. Trump said. “… But, so far, China has been unwilling to change its practices.”
The tariffs are aimed at pressuring China to change longstanding trade practices that Mr. Trump says are hurting American businesses at a moment when the administration believes it has an advantage in the trade dispute. China’s economy is slowing, with consumers holding back and infrastructure spending dropping sharply.
The Chinese slowdown is expected to worsen as America’s tariffs ramp up. The U.S., by contrast, is experiencing robust economic growth, including the lowest unemployment rate since 2000.
White House officials said Monday that China could win relief from the tariffs by acceding to the administration’s trade demands, including allowing American companies greater access to the China market and dropping its requirement that American companies hand over valuable technology to Chinese partners. Officials said the U.S. would continue trade negotiations only if the Chinese were “serious” about giving ground on those issues.
Unlike the first round of tariffs, which were designed to minimize the impact on American consumers, this wave could could hamper the U.S. economy and hurt consumers by raising prices on items including electronics, food, tools and housewares.