Donald Trump raises China trade tariffs to 25 percent

Reported by Washington Times:

President Trump said he’ll raise tariffs Friday on $200 billion worth of Chinese goods, ending a truce in the U.S. trade war with Beijing amid negotiations that the president said are moving “too slowly.”

Mr. Trump said on Twitter that U.S. tariffs of 10 percent will be increased to 25 percent on a variety of Chinese imports. He also warned that $325 billion worth of Chinese goods that haven’t been subject to tariffs will be levied at a rate of 25 percent “shortly.”

A team of trade negotiators from China led by Vice Premier Liu He is due in Washington this week to resume the latest round of talks with Treasury Secretary Steven T. Mnuchin, U.S. Trade Representative Robert Lighthizer and other U.S. officials. Both sides reported progress during negotiations in Beijing last week, and CNBC had reported that a deal could come by this Friday.

Mr. Trump and Chinese President Xi Jinping agreed in late November to suspend any more tariff increases on both sides as talks continued. The U.S. had begun raising tariffs on Chinese products in 2018 as Mr. Trump complained about Beijing’s unfair trade practices and a rising trade deficit with China.

The Chinese had responded with retaliatory tariffs on a broad range of U.S. goods, including agricultural products.

Mr. Trump said Sunday that partial tariffs on Chinese high-tech products “are partially responsible for our great economic results.”

“The Tariffs paid to the USA have had little impact on product cost, mostly borne by China,” he said. “The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!”

Economists say that tariffs are paid by U.S. importers, not by China, and that the importers pass along most of those increased costs to U.S. consumers.

Source:Washington Times