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The trucks are reflected in a spill while waiting to unload their containers on CMA CGM's Benjamin Franklin container ship moored at the Guangzhou Nansha container port in Guangzhou, China on Monday, February 1, 2016. Photographer: Qilai Shen / Bloomberg ( Qilai Shen / Bloomberg)
President Trump has decided to impose tariffs on $ 200 billion worth of Chinese products, two people said about the decision, one of the toughest economic restrictions ever imposed by a US president.
An announcement should be made in a few days, people said, on condition of anonymity because they were not allowed to discuss internal plans.
The new rates would apply to more than 1,000 products, including smartphones, televisions and toys. These penalties could increase the cost of a series of products before the holiday season, although we do not know how much.
Trump ordered its employees to set rates at 10%, which would likely result in higher prices for US consumers. These tariffs are paid by US companies that import the products, although the costs are often passed on to US consumers in the form of higher prices.
The United States imports about $ 500 billion worth of Chinese goods each year and, combined with existing tariffs, these new penalties would cover half of all goods shipped to the United States from China each year.
The 10% tariff is reduced from Trump's original plan to impose 25% penalties on all such imports. But the impact will likely be felt by millions of American consumers.
A White House spokesperson did not immediately respond to a request for comment on Saturday afternoon.
On Friday, White House spokeswoman Lindsay Walters said, "The President has made it clear that he and his administration will continue to take action against China's unfair trade practices. We encourage China to respond to the long-standing concerns raised by the United States. "
Trump's senior advisers were united in his efforts to push China to change its economic practices, but they were divided over its tactics. Some called for a more cautious diplomatic approach.
But Trump said he thought only the threat of a real economic crisis would push Beijing into major changes. He recently boasted of the impression that the Chinese economy was suffering from its difficult style.
Trump has accused China of a number of unfair trade practices and has threatened to impose tariffs on Chinese imports if the changes are not made. He wants China to buy more US goods, open China to more US investment, and stop, among other things, stealing US intellectual property.
The tariffs come as a number of White House advisers attempt to defuse tensions between Trump and Chinese leader Xi Jinping. Treasury Secretary Steven Mnuchin was planning to resume talks with China soon.
But Chinese leaders have vowed to retaliate against any escalation of the trade battle with their own punitive measures, and Trump's decision could push Beijing to take revenge.
The decision was first reported by the Wall Street Journal.
Trump has attempted to use tariffs to penalize a number of countries this year, including Mexico, Japan, Canada and members of the European Union, hoping that the threat of high costs will will make them more responsive to his requests. The tactics have had mixed success.
Trump first imposed tariffs on about $ 50 billion worth of Chinese products this summer, and the list of products mainly included industrial equipment with no direct impact on consumers.
China reacted by imposing tariffs on US products such as beef and soy, a reaction that scared the US agricultural sector and angered Trump and other White House officials. Trump responded this summer by asking his advisers to compile a list of $ 200 billion worth of other Chinese products to penalize a set of products with many consumer products.
And two weeks ago, he said he was preparing a third package of penalties on an additional $ 267 billion, a list that would likely encompass all the remaining products produced in China.
"In the short term, this combination of tactics seems to indicate that, unless China arrives at the table with significant action on US issues, the United States will maintain tariff pressure," he said. Claire Reade, former American merchant. negotiator. "Discussions without action will not do the trick. The open question, of course, is how much action is enough and whether China can find a way to move, which will be perceived as being in its own interest, and not in reaction to the United States.
The United States recorded a $ 233.5 billion deficit in merchandise trade with China in the first seven months of the year, an increase of 8% over the same period in 2017.
Business leaders increasingly believe that the trade dispute can only be resolved through direct negotiations between Trump and Xi. The two leaders could meet at the United Nations General Assembly in New York later this month and are expected to meet on the sidelines of the G-20 summit in Buenos Aires in November.
The two leaders could meet at the United Nations General Assembly in New York later this month and are expected to meet on the sidelines of the G-20 summit in Buenos Aires in November.
David J. Lynch contributed to this report
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