The White House followed through Friday on a threat to hike existing tariffs on $250 billion worth of Chinese goods to 25% percent across the board, up from 10% in most cases, and began the process of placing 25% tariffs on a further $325 billion worth of goods.
China’s Commerce Ministry said that it “deeply regrets” the U.S. move and that it would respond, without elaborating on how.
The escalation came as U.S.-Chinese negotiators were set to meet for a second day in Washington, D.C., in an effort to end the 10-month trade war between the world’s two largest economies. U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are scheduled to talk Friday morning with China’s top negotiator, Vice Premier Liu He.
“Talks with China continue in a very congenial manner – there is absolutely no need to rush – as Tariffs are NOW being paid to the United States by China of 25% on 250 Billion Dollars worth of goods & products. These massive payments go directly to the Treasury of the U.S.,” President Trump tweeted Friday.
“I came here this time, under pressure, to show China’s great sincerity,” Liu told state broadcaster CCTV after arriving in the U.S. on Thursday.
The White House has accused China of attempting to renege on items previously agreed to in the trade talks. Beijing must re-affirm the earlier pledges in order to reverse the tariff hike, the administration has said. Once the tariffs on the additional $325 billion of goods is implemented, virtually all Chinese imports will face a 25% levy.
Trump said Friday he was hopeful that a deal could still be reached, but argued that hiking tariffs was a good alternative as well.
“Tariffs will bring in FAR MORE wealth to our country than even a phenomenal deal of the traditional kind. Also, much easier & quicker to do. Our Farmers will do better, faster, and starving nations can now be helped. Waivers on some products will be granted, or go to new source!” he said.
