Trump Administration Considers Increasing Tariffs to 25 Percent
Advisers to President Trump are reportedly pushing for him to increase the tariffs on $200 billion worth of Chinese Goods up from 10 percent to 25 percent in order to force Beijing to compromise with trade practices.
The New York Times reported that the increased figure stems from "deep frustration within the Trump administration over its unsuccessful attempts to press China to change its trade practices, as well as by a sharp decline in the value of China's currency." China's currency dropped to a 13-month low against the U.S. dollar this week due in part to market forces, but also due to China's central bank lowering the standard to which the currency is "loosely tied," the New York Times reported.
Happy to see @realDonaldTrump is not backing down on #China. The message is clear “Mr. Xi tear down these tariffs (& intellectual property theft, blocking market access etc. etc.)” Now is no time for Congress to get weak on this. https://t.co/lsimOOuN01
— Marco Rubio (@marcorubio) August 1, 2018
— Bloomberg (@business) August 1, 2018
This also comes shortly after the president hinted at the possibility of placing tariffs on all of China's exports to the U.S.
Rather than backing down, Chinese officials said they will retaliate with their own measures, heating up the ongoing trade war between the two countries.
"China's position is firm and clear: Pressure and blackmail from the U.S. won't work," Geng Shuang, a spokesperson for China's foreign ministry, said, according to the New York Times. "If the U.S. takes a further and upgraded move, China would definitely retaliate to safeguard our legal rights."