Tariffs could escalate the trade war between the two biggest economies in the world although the tariffs will not be imposed until after a period of public comment.
Paulina Dedaj is a writer/ reporter for Fox News.
Sheng Liugang, an assistant professor of economics at the Chinese University of Hong Kong, said about 22 percent of goods subject to the additional tariff are consumer products, so levies would have a greater direct effect on USA citizens. The Mexican negotiators are hoping to reach an agreement this month with the United States, then bring Canada back into the negotiations.
There have been no formal talks between Washington and Beijing for weeks over Mr Trump's demands that China make fundamental changes to its policies on intellectual property protection, technology transfers and subsidies for high technology industries. At the same time, the U.S. indicated it is open to restarting formal negotiations with China, though Beijing must agree to open its markets to more competition and stop retaliating against USA trade measures.
The Business Roundtable, which includes many firms with extensive operations in China, laid out a negotiating agenda for U.S.More news: ‘Shut Your Mouth’: Judge Orders Convicted Robber’s Mouth Taped Shut During Sentencing
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Trump also got more pushback on his tariff plans from the U.S. Congress on Wednesday as a bipartisan group of senators, led by Republican Rob Portman of OH, launched new legislation that would scale back the president's power to impose tariffs for national security reasons under a Cold War-era trade law.
Last month, Washington and Beijing imposed a first round of 25 percent tariffs on 34 billion dollars worth of each other's goods. Beijing retaliated with matching tariffs on the same amount of US exports to China.
U.S. Commerce Secretary Wilbur Ross discusses why President Trump needs to impose more tariffs on Chinese goods. That case concluded China was stealing American technology and tariffs were needed to offset the damage.
"The cost increases will be passed on to customers, so it will affect most Americans pocketbooks". China upped the ante on Thursday in response to the Trump administration's latest move. The tariffs target a range of Chinese imports like dog food, furniture, vehicle tires, beauty products, and food products, in addition to steel and aluminum. The combined total of over $500 billion of goods would cover virtually all Chinese imports into the United States.
The US government is now discussing and taking comments on the implications of these tariffs from key industry figures who are campaigning for the tariffs to be dropped or removed altogether until the 17th of August.