The US could increase tariff rates on Chinese imports

A Chinese soldier reacts to a photographer on the eve of the 19th Communist Party Congress in October 2017. (Photo: Greg Baker/AFP/Getty Images)
  • The US may increase proposed tariff rates on $US200 billion worth of Chinese imports.
  • The US Trade Representative (USTR) previously announced the imports would attract tariffs of 10%.
  • China and the United States have not held formal trade talks in nearly two months.

The United States may announce higher tariff rates on Chinese imports entering the country, a move designed to increase pressure on China to resume trade negotiations.

According to Bloomberg, citing unnamed sources, proposed 10% tariffs on $US200 billion worth of Chinese imports, announced in July, could be increased to 25% within the coming days.

“President Donald Trump has threatened an additional $US200 billion with levies of 10%, a level the administration may raise to 25% in a Federal Register notice in coming days,” a source told Bloomberg.

The source added the caveat that the change hasn’t been finalised as yet and may not go forward after a public review.

The proposed tariffs could be introduced as soon as early September after public hearings, running between August 20-23, conclude.

Having already introduced 25% tariffs on $US34 billion worth of Chinese imports in June, an additional $US16 billion in imports could attract new 25% tariffs as soon as this week.

China, as it did with the first round of tariffs, has vowed to implement reciprocal tariffs on US imports.

Despite signs of a thawing in relations between China and the United States based on recent media reports, the two sides have not held formal discussions in close to two months.

Bloomberg has more here.

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