Donald Trump plans to propose 25% tariff on $200 billion of Chinese imports

While the tariffs would not be imposed until after a period of public comment, raising the proposed level to 25 percent could escalate the trade dispute between the world's two biggest economies.

By: Reuters | Washington | Published: August 1, 2018 8:37:45 am

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US President Donald Trump with his Chinese counterpart Xi Jinping. In July, China accused the United States of bullying and warned it would hit back. (File)

The Trump administration plans to propose slapping a 25 percent tariff on $200 billion of imported Chinese goods after initially setting them at 10 percent, a source familiar with the plan said on Tuesday. President Donald Trump’s administration said on July 10 it would seek to impose the 10-percent tariffs on thousands of Chinese imports.

They include food products, chemicals, steel and aluminum and consumer goods ranging from dog food, furniture and carpets to car tires, bicycles, baseball gloves and beauty products. While the tariffs would not be imposed until after a period of public comment, raising the proposed level to 25 percent could escalate the trade dispute between the world’s two biggest economies.

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The source said the administration could announce the tougher proposal as early as Wednesday. There was no immediate reaction from the Chinese government. In July it accused the United States of bullying and warned it would hit back.

Investors fear an escalating trade war between Washington and Beijing could hit global growth, and prominent US business groups have condemned Trump’s aggressive tariffs. A spokeswoman for the US Trade Representative’s Office declined to comment on the proposed tariff rate increase or on whether changing them would alter the deadlines laid out for comment period before implementation.

In early July, the US government imposed 25-percent tariffs on an initial $34 billion of Chinese imports. Beijing retaliated with matching tariffs on the same amount of US exports to China. Washington might also impose tariffs on an extra $16 billion of goods in coming weeks, and Trump has warned he may ultimately put them on over half a billion dollars of goods – roughly the total amount of US imports from China last year.