UPDATE: US levels $200B in additional tariffs on China; Beijing cancels Washington trip

UPDATE — 9/18, 8:37 a.m. EDT: The Trump administration announced late Monday a 10 percent excise tax on an additional $200 billion in Chinese imports as expected, rising to 25 percent at the start of the new year.

A White House statement said the U.S. will impose tariffs on $267 billion more worth of goods from China if Beijing retaliates further “against our farmers or other industries”.

The South China Morning Post reported Tuesday a source within the Chinese government saying Beijing is planning to cancel a meeting in Washington set for next week between Vice-Premier Liu He and U.S. negotiators.

 

Sources within the Trump administration say the president will announce new tariffs on $200 billion worth of Chinese imports on Monday. The tariff level is likely to be at about 10 percent, lower the previously warned 25 percent.

This is one of the most severe economic restrictions ever imposed by a U.S. president and will apply to over 1,000 products, potentially driving up the cost of toys, refrigerators, air conditioners, televisions and furniture in time for the holiday shopping season.

Earlier this summer, President Trump imposed tariffs on $50 billion of Chinese products. China responded by imposing tariffs on U.S. beef and soybeans.

White House spokesperson Lindsay Walters stated the administration “will continue to take action to address China’s unfair trade practices.”

Trump has demanded that China cut its $375 billion trade surplus and has accused Beijing of unfair trade practices.

The U.S. and China are expected to continue trade talks later in September. Two weeks ago, Trump warned the U.S. is preparing a third tariff package which will tax $267 billion in additional items, likely covering all remaining Chinese exported goods.

 

[Reuters] [Wall Street Journal] [Washington Post] [Politico] [Photo courtesy AFP via South China Morning Post]