President Trump announced Sunday that his administration would increase the tariffs on $200 billion worth of imported Chinese goods to 25%, up from 10%, and would place 25% tariffs on an additional $325 billion of goods.
The new policy, effective Friday, would effectively cover all goods imported from China. The announcement comes following weeks of effort by the administration to negotiate a trade deal with Beijing. Trump indicated that the hike was to put additional pressure on China.
“For 10 months, China has been paying Tariffs to the USA of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods. These payments are partially responsible for our great economic results. The 10% will go up to 25% on Friday,” Trump tweeted.
He added: “325 Billions Dollars… of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%. The Tariffs paid to the USA have had little impact on product cost, mostly borne by China. The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!”
The tweets indicate that Trump has become frustrated with the negotiations, which have stretched on for months. Administration officials have described the deal as being close to a conclusion several times in recent weeks but a final agreement has proven elusive.
Tariffs critics expressed alarm at the tweets. “If the President follows through on this threat, the consequences will be dire. Raising tariffs to 25 percent could cost nearly one million American jobs, according to recent estimates. This decision will also roil financial markets and increase the likelihood of retaliation on American farmers who are facing the lowest income levels in years,” said Tariffs Heart the Heartland, an ad-hoc group of trade associations seeking to roll back the levies.
[Related: Business groups object to Trump plans to retain tariffs in China trade deal]
U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin traveled to Beijing for negotiations last week and are set to meet this week in Washington, D.C., with Chinese Vice Premier Liu He. Myron Brilliant, executive vice president of the Chamber of Commerce, told reporters Thursday that the talks between the White House and China on a new trade deal were “94.5% finished” and close to “endgame” status.
The White House placed 10% to 25% tariffs on $250 billion worth of Chinese goods in order to pressure Beijing to change its allegedly predatory trade policies. The administration has sought a trade deal with China that would retain some of the existing tariffs as well as create an enforcement mechanism that would automatically impose additional tariffs should China violate the deal’s terms. Beijing has resisted the administration’s proposals.
China has placed tariffs ranging from 5% to 25% on $130 billion worth of U.S. goods.
