Trump edges closer to $200B China tariffs
Decision not final, but president likes plan, sources say
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.
Companies and members of the public have until Thursday 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.
The tariff news exacer- A widening trade war could hurt ports that handle goods the U.S. imports from China. bated 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. The Trump administration waited about three weeks after announcing in mid-June that it was imposing tariffs on $34 billion of Chinese goods before they were implemented. The next stage of tariffs on $16 billion of goods took hold in August.
The imposition of the $200 billion tranche would be the biggest so far and would mark a major escalation in the trade war between the world’s two largest economies. It is likely to further unnerve financial markets that have been concerned about the growing tensions. China has threatened to retaliate by slapping duties on $60 billion of U.S. goods. The Trump administration is finalizing the list of Chinese targets and tariff rate, which could range from 10 percent to 25 percent.
Trump’s plan to bring down his biggest hit yet on China comes as trade talks show little signs of progress. Discussions between U.S. and Chinese officials last week i n Washington yielded few results.
The latest China tariff decision is causing debate within the administration, with U.S. Trade Representative Robert Lighthizer and White House trade adviser Peter Navarro pushing for quick action, and Treasury Secretary Steven Mnuchin and White House economic adviser Larry Kudlow arguing for more time, according to people familiar with the matter.
Trump cut off negotiations with China because of what he perceives as Beijing’s lack of cooperation in nuclear talks with North Korea, one of the people said. The president wants to squeeze China, believing the U.S. has leverage over Beijing, that person said.
Trump on Wednesday accused China of pressuring North Korea not to bend in nuclear negotiations with the U.S. But he insisted that the trade differences would be resolved.
“As for the U.S.-China trade disputes, and other differences, they will be resolved in time by President Trump and China’s great President Xi Jinping. Their relationship and bond remain very strong,” Trump said on Twitter.