U. S. President Donald Trump said on Thursday he was taking steps to authorize new tariffs on $325 billion in Chinese imports as officials began last-ditch talks to avert an escalation of a trade war that threatens to derail the global economy.
WASHINGTON/BEIJING (Reuters) – U. S. President Donald Trump said on Thursday he was taking steps to authorize new tariffs on $325 billion in Chinese imports as officials began last-ditch talks to avert an escalation of a trade war that threatens to derail the global economy.
With acrimony between Washington and Beijing rising, there was little time to salvage a trade deal between the world’s two largest economies before another round of punitive tariffs are triggered.
Chinese Vice Premier Liu He, U. S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin started two days of talks late Thursday afternoon in Washington after a major setback.
Reuters on Wednesday revealed the extent of the rift that has opened between the two countries, reporting that a draft trade agreement text sent by Beijing on Friday night was riddled with changes that marked reversals in Chinese commitments that undermined core U. S. demands.
Trump responded by ordering a tariff hike. Thursday’s trade talks started only just a few hours before the increased duties on $200 billion of Chinese goods, to 25 percent from 10 percent, was due to begin at 12:01 a.m. EDT (0401 GMT) Friday.
Trump said on Thursday he was “starting… paperwork today” to impose a 25 percent tariff on the $325 billion in Chinese goods untouched by the trade war so far.
China is expected to retaliate, as it has with previous U. S. tariffs, effectively subjecting all trade between the world’s two largest economies to punitive levies.
