Donald Trump has said he will raise tariffs on US$ 200bn of Chinese goods because talks on a US-China trade deal are moving “too slowly”. The US president tweeted that tariffs of 10% on certain goods would rise to 25% on Friday, and US$ 325bn of untaxed goods could face 25% duties “shortly”.
The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No! he tweeted. The countries have seemed near to striking a trade deal in recent weeks.
Mr Trump delayed further tariff increases earlier in the year, citing progress in talks. The move increases pressure on China as Vice-Premier Liu He prepares to travel Washington this week to resume negotiations.
That follows talks in April in Beijing that US Treasury Secretary Steven Mnuchin called productive. White House economic adviser Larry Kudlow told Fox News that the president's tweet was a warning.
The president is, I think, issuing a warning here, that, you know, we bent over backwards earlier, we suspended the 25% tariff to 10 and then we've left it there.
That may not be forever if the talks don't work out, he said.But Michael Pillsbury, an informal trade adviser to Trump, said he took the president's tweet at face value.
So far, the US has imposed tariffs on US$ 250bn of Chinese goods, having accused the country of unfair trade practices. Beijing hit back with duties on US$ 110bn of US goods, blaming the US for starting the largest trade war in economic history”.
According to reports, in recent days US officials have become frustrated by China seeking to row back on earlier commitments made over a deal.
It is understood that key sticking points include how to police any deal, and whether existing tariffs will be removed or stay in place.