Trump says he'll raise tariffs on $200bn of Chinese goods

Trump says he'll raise tariffs on $200bn of Chinese goods

Complaining about a lack of progress in ongoing Sino-American trade talks, US President Donald Trump announced on Sunday that his country would raise tariffs on $200 billion of Chinese goods from 10% to 25%.

President Trump, who has called himself a "tariff man", vowed to hike import taxes on $200 billion in Chinese products from 10 percent to 25 percent. He said the 10 per cent would go up to 25 per cent on Friday.

As recently as Friday, Trump said talks with China was going well.

In the announcement on Twitter, Trump said that talks to secure a trade deal with China are continuing, but are moving "too slowly".

Trump says he wants to reduce the huge United States trade deficit with China, which in 2018 totalled $378.73 billion if you include trade in services. The U.S. has accused China of resorting to predatory tactics - including cybertheft and forcing foreign companies to hand over technology - in a drive to establish Chinese companies as world leaders in advanced industries such as robotics and electric vehicles.

Trump is also demanding that China halt theft of intellectual property and subsidies to state-owned companies.

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China and the United States have been engaged in a trade dispute since last June, when Trump announced that the United States would subject $50 billion worth of Chinese goods to 25 percent tariffs in a bid to fix the over $400 billion USA trade deficit with China. 325 Billions Dollars of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%.

In February, Trump delayed a tariff hike planned for March 1, citing "productive" talks between the United States and China. And economists warn that U.S. consumers will end up paying more for everyday items.

But last week, Treasury Secretary Steven Mnuchin seemed to temper expectations, suggesting that Washington was willing to "move on" if it can't get the deal it wants.

His comments came as Vice-Premier Liu He is preparing to travel to Washington this week to resume negotiations, with both sides trying to end a trade war that has affected the global economy.

Vice President Mike Pence said Friday that Trump is prepared to impose even more tariffs if no deal is reached. Treasury Secretary Steve Mnuchin called the previous April talks between the USA and China "productive".

Bloomberg Economics chief economist Tom Orlik said: "It's possible talks are breaking down, with China offering insufficient concessions, and an increase in tariffs a genuine prospect".

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