President Donald Trump announced on 6 May that Washington would be raising tariffs on $200 billion worth of Chinese goods, citing a lack of progress in trade talks between the two states aimed at ending the almost year-long trade war.
US Trade Representative Robert Lighthizer has shed light on the reasons behind the planned increase in tariffs on $200 billion worth of Chinese goods from 10 to 25%. According to him, China had begun to backtrack on its commitments, which were supposed to serve as a basis for a future new trade deal.
„Over the course of the last week or so we have seen […] an erosion in commitments by China. That in our view is unacceptable. We’re not breaking off talks at this point. But for now […] come Friday there will be tariffs in place“, he said.
His words were echoed by Treasury Secretary Steven Mnuchin, who indicated that Beijing was backtracking on the „language [of the deal] that had been previously negotiated“, which could alter a future trade deal „dramatically“.
