WEB DESK
Trade war between US and China is all set to aggravate as US President Donald Trump has threatened to impose a fresh 10% tariff on another $300bn (£247bn) of Chinese goods.
It came after the latest round of bilateral talks showed little sign of a breakthrough. The new tariffs, due to take effect on 1 September, effectively tax all Chinese imports to the US.
The duty is likely target a wide range of goods, from smartphones to clothing. Mr Trump announced the tariff plan on Twitter, while criticising China for not honouring promises to buy more US agricultural products at this week’s negotiations in Shanghai.
He also attacked Chinese President Xi Jinping for failing to do more to stem sales of the synthetic opioid fentanyl.
The threat marks the biggest escalation so far taken by the Trump administration and brings a surprise end to a truce that had been in place since the president met Xi Jinping, his Chinese counterpart, in Osaka at the end of June. Markets, which had been up ahead of the news, tumbled with all three major equity indices closing down by around 1% and bond yields sinking. Oil plunged almost 8% for the steepest one-day drop in more than four years.
Donald J. Trump
✔
@realDonaldTrump
Replying to @realDonaldTrump
…during the talks the U.S. will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country. This does not include the 250 Billion Dollars already Tariffed at 25%…
In later remarks, the president told reporters the 10% tariff was a short-term measure and that tariffs could be lifted further in stages to more than 25%.
“Somebody should have done this with China a long time ago,” he added.