President Donald Trump on Sunday (May 5) threatened to dramatically ramp up the trade war with China unless a breakthrough on trade talks is reached by the end of the week.
Business Insider reported that the president said current tariffs on $200 billion worth of Chinese goods will be increased from 10% to 25% and the U.S .will place 25% tariffs on an additional $325 billion worth of Chinese goods that are currently untaxed on Friday. Trump said the slow pace of trade deal negotiations was the cause for the new restrictions.
“For 10 months, China has been paying tariffs to the U.S. of 25% on $50 billion of Hhgh tech, and 10% on $200 billion of other goods,” Trump tweeted. “These payments are partially responsible for our great economic results. The 10% will go up to 25% on Friday. $325 billions of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%. The tariffs paid to the U.S. 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!”
Trade talks between the U.S. and China have been ongoing since Trump and Chinese president Xi Jinping reached a temporary trade truce at the end of November, but major sticking points on how to enforce the deal and what to do with current tariffs have caused problems in the discussions.
Chinese Vice Premier Liu He, the country’s top economic official, is scheduled to travel to Washington, D.C., for another round of talks this week. While a deal is close, reports suggest that the US has backed down on a handful of demands designed to force China to make fundamental changes to its economy.
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