The US is imposing new tariffs on $200 billion worth of Chinese goods as it escalates its trade war with Beijing.
The taxes will take effect from September 24, starting at 10 percent and increasing to 25 percent from the start of next year unless the two countries broker a peace deal before then.
A news report by Reuters on the latest fiscal war unleashed by the Trump administration against China indicated that the higher import taxes will apply to almost 6,000 items, marking the biggest round of US tariffs so far.
According to the report, handbags, rice and textiles will be included, but some items expected to be targeted such as smart watches and high chairs have been excluded.
It would be recalled that China had previously vowed to retaliate against any further US tariffs.
President Donald Trump explained that the latest round of tariffs was in response to China’s “unfair trade practices, including subsidies and rules that require foreign companies in some sectors to bring on local partners.
“We have been very clear about the type of changes that need to be made, and we have given China every opportunity to treat us more fairly. But, so far, China has been unwilling to change its practices,” he maintained
Trump warned also that if China retaliated then the US would “immediately pursue phase three” which would mean imposing further tariffs with taxes on another $267 billion worth of Chinese products.
If he goes ahead with a further $267 billion worth of tariffs, it would mean virtually all of China’s US exports to the U.S would be subject to new duties.
This latest round marks the third set of tariffs put into motion so far this year. In July, the White House increased charges on $34bn worth of Chinese products. Again last month, the escalating trade war moved up a gear when the US brought in a 25% tax on a second wave of goods worth $16bn.
This latest round means that around half of all Chinese imports to the US are now subject to the new duties.
