President Trump is preparing additional tariffs on $267 billion worth of Chinese imports, a move that will inflame fears that his dispute with Chinese leadership will devolve into a trade war.
Trump said aboard Air Force One Friday that he is ready to dramatically ramp up the China tariffs. “There is another $267 billion ready to go on short notice if I want,” he said, according to Bloomberg.
The White House has already enacted 25 percent tariffs on $50 billion worth of Chinese exports of machinery, electronics and other components. In recent days the administration has proceeded toward imposing additional 25 percent tariffs on $200 billion worth of Chinese products. Trump said Friday that those tariffs would take effect “very soon depending on what happens” with ongoing negotiations.
White House economic adviser Larry Kudlow hinted earlier in the day that negotiations between the U.S. and China aren’t getting close to bringing about a final deal, arguing that China remains unwilling to acquiesce to U.S. demands.
“China has been really unsatisfactory on our asks … but we’re still talking,” Kudlow said in an interview on Bloomberg.
After a two-month standstill, mid-level U.S. Treasury Department and Chinese officials had two days of trade negotiations in late August. Previous negotiations had produced little progress. Instead, they gave way to tit-for-tat escalation of tariffs between China and the U.S. and produced no commitment from China to halt unfair trade practices. Last month’s talks, too, failed to produce a final agreement.
The Dow Jones Industrial Average fell 120 points after news broke Friday of Trump’s comments.
Trump has said he is willing to slap tariffs on all of the goods China imports to the U.S., totaling $506 billion. For its part, China has retaliated with tariffs of its own, but, due to a mismatch in trade, it does not have the capability of retaliating to the same extent.
[Also read: Trump planning trade fight with Japan next]
