US to raise tariffs on $200 billion worth of Chinese imports

Washington: The United States will raise tariffs on $200 billion worth of Chinese imports to 25% from 10% effective on Friday, according to a notice posted to the Federal Register on Wednesday.

The US Trade Representative's office will establish a process to seek exclusions for certain products from additional tariffs, the Federal Register notice said.

US President Donald Trump said in a tweet that he would be "very happy with over $100 Billion a year in Tariffs filling US coffers."

His comments followed a Reuters report that quoted US government and private-sector sources as saying China had backtracked on almost all aspects of a draft trade agreement with the United States.

During a 10-month US-China war, US tariffs have been imposed on $250 billion worth of Chinese goods, and retaliatory Chinese tariffs slapped on $110 billion worth of American products. Trump has pushed for sweeping changes to China’s policies on intellectual property theft, technology transfers industrial subsidies and market access.

Trump has criticized the US trade deficit with China, which hit a record $419 billion in 2018, as stealing American manufacturing jobs. His hard line on China has played well with his political base in Midwestern industrial and farm states, with Trump seeking re-election next year.

Trump had initially set the tariff increase to 25% on $200 billion worth of Chinese goods, including internet modems and routers, printed circuit boards, vacuum cleaners and furniture, in January. He delayed the deadline until 1 March to allow negotiations, and then postponed the increase indefinitely, citing progress in the talks.

Global equities tumbled toward five-week lows as the escalating trade fight fed worries about the world economy and investors sought the safety of bonds and the Japanese yen, which hit a six-week high against the US dollar.