The Trump administration is imposing tariffs on $200 billion United States more in Chinese goods starting next week, escalating a trade war between the world's two biggest economies and raising prices on consumer goods ranging from handbags to bicycle tires.
Collection of 10 per cent tariffs will start on September 24 but the rate will increase to 25 per cent by the end of the year, allowing USA companies some time to adjust their supply chains to other countries, a senior administration official said. The Trump administration also threatened to pursue additional tariffs on $267 billion worth of Chinese goods if Beijing retaliates against farmers or other USA industries.
Indeed, many critics of Chinese economic policy in the USA hope the escalating trade dispute will discourage companies in the US and elsewhere from investing in China.
"In the short term, we will have higher prices and fewer jobs than we would have had otherwise", Sohn said. That would raise the total to $517 billion - covering almost everything China sells the United States.
The message will be especially poignant to Canada, with which the U.S.is now engaged in a trade stand-off, and Europe, a heavy bearer of steep steel and aluminum tariffs introduced earlier in the year by the president.
Beijing would not be able to match such tariffs dollar for dollar, since the U.S. imports about US$335 billion more in Chinese goods, according to the most recent trading figures. That could affect smaller technology firms such as Eero, a start-up company that makes home routers and had asked to be exempted from the tariffs.
However, senior administration officials told reporters the initial list announced in July was reduced by 300 product lines after the administration received 6,000 written comments from consumers and businesses.
The duties already levied on $50 billion worth of Chinese goods followed a study on China's intellectual property practices released earlier this year.
The president said countries unwilling to participate in fair trade will be tariffed. This has raised concerns that China could retaliate with non-tariff trade measures.
China had issued a list of another $60 billion of USA goods for retaliation if the US proceeds with more tariffs.
Trump's tariffs on China raise costs and create uncertainty for companies that have built supply chains that span the Pacific Ocean. These new tariffs would reportedly take effect "within weeks".
The president has suggested, tariffs on a couple hundred billion dollars.
The Trump administration has been revising the list of Chinese goods that will be hit by tariffs following a feedback period and more than a week of public hearings last month. "The unilateral and hegemonic moves by the United States will meet firm countermeasures from China", the Global Times said in an editorial.
Trump has also complained about America's massive trade deficit - $336 billion past year - with China, its biggest trading partner.
Chinese officials are likely already tired of entering negotiations with Mnuchin, after a truce he supposedly brokered with Liu in May was publicly undermined by Trump.