The Trump administration said this week that it's considering increasing the proposed tariff on $200 billion in Chinese imports to 25 per cent from 10 per cent. President Donald Trump has asked U.S. Trade Representative Robert Lighthizer to consider hiking the duties, which could be implemented as early as next month.
President Trump has proposed that US trade officials raise tariffs on Chinese goods from 10 percent to 25 percent over a perceived failure to address concerns regarding unfair trading practices, officials said.
Raising the proposed tax rate on those goods means extending the deadline for public comment on the plan from August 30 to September 5.
"The increase in the possible rate of the additional duty is meant to provide the Administration with additional options to encourage China to change its harmful policies and behavior and adopt policies that will lead to fairer markets and prosperity for all of our citizens", Lighthizer said.
The US has already imposed 25pc tariffs on $34b worth of Chinese imports, with another $16b to be targeted in coming weeks. But Chinese Foreign Ministry spokesman Geng Shuang reiterated at a regular news briefing that the United States' efforts at "blackmail" would fail.
Markets were however steady on Tuesday, given a boost by hopes for new negotiations. - Office of the U.S. Trade Representative. Said: "Though the tariff tantrum ramped up a bit since the last FOMC confab, the core of the Fed is thus far unconvinced that this warrants any material shift in the outlook, our core view remains that the Fed is poised to raise the fund's rate by an additional 50 basis points this year and another 100 basis points in 2019".More news: Call of Duty: Black Ops 4 multiplayer beta teases Blackout Royale
But the president is losing his trade war based on Trump's own preferred statistic-U.S. the trade deficit-which has continued to grow both in overall terms and with respect to China specifically.
But David MacNaughton, Canada's ambassador in Washington, told the AP it made sense for the USA and Mexico to negotiate first: "There are a couple of lingering issues between the USA and Mexico" that need to be settled "before we can move on", he said.
Offshore yuan dropped to a 15-month low on Friday morning as the US-China trade war escalates, with traders projecting the Chinese currency to slip further through the year.
Among the 6,031 items on the most recent $200 billion list are 67 items on which the USA depends wholly on Chinese imports, the center said. "The United States' method of adding pressure will not, I'm afraid, have any effect", Wang told reporters on the sidelines of a regional forum.
Since July 1, the States have introduced duties for goods worth $34 bln and China responded in a tit-for-tat manner.
Trump has threatened to slap tariffs on virtually all of China's exports to the US. Beijing retaliated with matching tariffs on the same amount of USA exports to China.