Trump Readies Tariffs on $200 Billion More Chinese Goods

Investors hope fresh talks will avert an all-out US-China trade war

Investors hope fresh talks will avert an all-out US-China trade war More

Trump also threatened to add tariffs on about $267 billion of additional imports if China retaliates against USA farmers or other industries.

Chinese officials have acknowledged the invitation but are reportedly considering not attending proposed meetings in Washington, D.C. if the USA moves ahead with the new tariffs.

White House economic adviser Larry Kudlow announced during an interview on Monday that President Donald Trump would likely be imposing new tariffs on a "couple hundred billion" worth of imports from China. "We just need a decent move either way before they take profit or restructure what they have".

Trump said there is a "good chance" the USA and China would be able to resolve a burgeoning trade war.

A product code that covers the Apple goods and similar smart watches and fitness trackers made by competitors including Fitbit Inc (FIT.N) is not on the list of Chinese products that will attract a tariff, Bloomberg reported.

The president has vowed to put punitive tariffs on another $200 billion in Chinese goods, meaning tariffs would now affect roughly half of what the United States buys from China - its largest source of imported merchandise.

Kudlow declined to specify details of the expected announcement but noted that reports indicating Trump will unveil 10 percent duties on $200 billion in imports are "more or less correct".

In response to President Trump's threatened tariffs, Beijing has teed up tariffs of five to 25 percent on $60 billion of U.S. goods including pig hides, cocoa butter and condoms.

The trade tiff has yet to be felt in US markets as the tariffs, which now are set at 3.8 per cent, may rise to just 10 per cent, which most companies can handle in a growing economy, said Brian Nick, chief investment strategist at said on Monday he would announce his latest plan on China tariffs after the markets close.

Trump has said he will no longer allow China to take advantage of the United States on trade, though opposition to escalating tariffs has swelled in recent weeks within USA business circles.

Other commentators have suggested Beijing use its holdings of USA government debt or target American companies in China.

Last week, the U.S. Treasury Department invited senior Chinese officials, including Vice Premier Liu He, to more talks on the tariff dispute, though scepticism remained high among trade observers on both sides over the prospects of a breakthrough.

It also explained that the new tariffs, as instructed by President Trump, will be set at ten percent, . lower than the initial figure of 25 percent.

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