Escalating his trade war with China, President Donald Trump bumped up his tariffs on Chinese imports Friday, lashing back after Beijing raised taxes on US products.
In a tweet, Trump said he would be raising tariffs on $300 billion in Chinese goods from 10% to 15%. The Office of the US Trade Representative also said that on October 1 the US would hike tariffs on another $250 billion in Chinese imports from 25% to 30%.
....Sadly, past Administrations have allowed China to get so far ahead of Fair and Balanced Trade that it has become a great burden to the American Taxpayer. As President, I can no longer allow this to happen! In the spirit of achieving Fair Trade, we must Balance this very....— Donald J. Trump (@realDonaldTrump) August 23, 2019
...unfair Trading Relationship. China should not have put new Tariffs on 75 BILLION DOLLARS of United States product (politically motivated!). Starting on October 1st, the 250 BILLION DOLLARS of goods and products from China, currently being taxed at 25%, will be taxed at 30%...— Donald J. Trump (@realDonaldTrump) August 23, 2019
The move came hours after Beijing said it would hike tariffs on $75 billion in US imports, escalating a conflict over trade and technology that threatens to tip a fragile global economy into recession.
Earlier Friday, the president said he “hereby ordered” US companies to seek alternatives to doing business in China. The escalating tensions between the world's two biggest economies sent the stock market into a tailspin. The Dow Jones Industrial Average closed down 643 points - before Trump announced the new tariffs.
Tariffs on $300 billion in Chinese imports are scheduled to go into effect in two stages - on Sept. 1 and Dec. 15. Originally scheduled to be 10%, they will now be 15%.
Though expected, the president appeared caught off-guard by China’s Friday action, and was angry when he gathered with his trade team in the Oval Office before departing for France, according to two people familiar with the meeting who spoke to AP on condition of anonymity because they were not authorized to disclose closed-door conversations.
Officials, including US Trade Representative Robert Lighthizer and adviser Peter Navarro discussed potential retaliatory options. Treasury Secretary Steve Mnuchin, returning from vacation, joined by phone.
Earlier Friday, the president said he “hereby ordered” US companies to seek alternatives to doing business in China.
The rising tensions between the world’s two biggest economies sent the stock market into a tailspin. The Dow Jones Industrial Average closed down 643 points - before Trump announced the new tariffs.
Tariffs on $300 billion in Chinese imports are scheduled to go into effect in two stages - on September 1 and December 15. Originally scheduled to be 10%, they will now be 15%.
Trump’s latest escalation will impose a burden on many American households. Even before he announced an increase Friday, J.P. Morgan had estimated that Trump’s tariffs would cost the average household roughly $1,000 a year if he proceeded with his threats.
Businesses large and small joined in a chorus of opposition to the intensifying hostilities.
“It’s impossible for businesses to plan for the future in this type of environment,” said David French, senior vice president of government relations at the National Retail Federation. “The administration’s approach clearly isn’t working, and the answer isn’t more taxes on American businesses and consumers. Where does this end?”
By adding onto the Chinese imports he’s already targeted, Trump is extending his tariffs to just about everything China ships to the United States.