Shanghai, China—The Chinese government announced that it will impose its own tariff increases on American imports, which The New York Times called “the latest sign that neither side is prepared to back down in their trade war.”
The State Council Tariff Commission in Beijing said it would impose extra tariffs of 5% or 10% on $75 billion worth of American goods, set to take effect on September 1 and December 15.
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The Times notes that the Commission did not provide the value of how much would be penalized in the first batch and how much in the second.
The tariffs will coincide with the dates of the next two batches of President Trump’s tariffs, according to the Times. While President Trump originally threatened to impose all tariffs at the beginning of September, he has since decided to delay more than half until December, and canceled the tariffs entirely for a few categories.
President Trump, according to the Times, responded by tweeting: “Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing our companies HOME and making your products in the USA.”
According to USA Today, President Trump said on Friday that he will raise tariffs on $550 billion in Chinese goods. He said he would raise the tariffs from 25% to 30% on $250 billion in Chinese products, set to take effect on October 1and from 10% to 15% on the remaining $300 billion, set to take effect on September 1.
As of this morning, 8/26, Reuters reported that the U.S. and China are looking to ease tensions: President Trump said Chinese officials had contacted U.S. trade counterparts and offered to return to the negotiating table, and Vice Premier Liu He said that China was looking to resolve the trade dispute through “calm” negotiations, and resolutely opposed escalation.
Reuters noted that China’s Foreign Ministry spokesman Geng Shuang said he had not heard that a phone call between the two sides had taken place.
More on this as the situation develops.