The Chinese government may decline to participate in proposed trade talks with the United States later this month if the Trump administration moves forward with additional tariffs on imported Chinese goods, a published report said on Sunday, citing Chinese officials.
The United States had proposed the talks, but at the same time moved forward with planning additional tariffs on some US$200-billion of Chinese products.
The report quoted one senior Chinese official saying the country would not negotiate “with a gun pointed to its head.”
Other officials who advise the country’s leaders are suggesting China impose limits on the sale of parts and supplies needed by U.S. businesses, using “export restraints” to threaten their supply chains.
Fresh trade talks had been proposed by U.S. Treasury Secretary Steven Mnuchin to begin around Sept. 20.
If additional tariffs were to be imposed by the United States, the tariff level will probably be about 10 per cent, the Wall Street Journal reported, quoting people familiar with the matter. This is below the 25 per cent the administration said it was considering for this possible round of tariffs.
The approaching tariffs will be on a list of items that included US$200-billion worth of internet-technology products and other electronics, printed circuit boards and consumer goods including Chinese seafood, furniture and lighting products, tires, chemicals, plastics, bicycles and car seats for babies. It was unclear if the administration will exempt any of the products that were on the list, which was announced in July.
On Friday, White House spokeswoman Lindsay Walters said President Donald Trump “has been clear that he and his administration will continue to take action to address China’s unfair trade practices. We encourage China to address the long-standing concerns raised by the Unites States.”
Mr. Trump had already directed aides to proceed with tariffs, despite Mr. Mnuchin’s attempts to restart trade talks with China.
U.S. President Donald Trump is poised to impose new tariffs on a list of Chinese goods, perhaps as early as Monday, a senior administration source has told Reuters.
Reuters
One observer in the business sector said the administration may have reduced its planned tariff level after hearing public comments, hoping companies would not immediately hike prices for consumer goods to pass along the costs. Still, the additional tariffs could complicate trade talks with China expected later this month.
Mr. Trump has demanded that China cut its US$375-billion trade surplus with the United States, end policies aimed at acquiring U.S. technologies and intellectual property, and roll back high-tech industrial subsidies.
This week, the world’s two largest economies appeared to be making progress on trade. Treasury invited senior Chinese officials, including Vice-Premier Liu He, for more talks.
The administration has already levied duties on US$50-billion worth of Chinese goods after a study on China’s intellectual-property practices released earlier this year.
On Sept. 7, Mr. Trump warned he had further tariffs ready to go on US$267-billion worth of Chinese imports beyond those that will be targeted this week. If all of the tariffs were invoked, total imports from China facing tariffs would exceed the US$505-billion in goods that the United States imported from China last year.
This year, imports from China through July were up nearly 9 per cent from the same period of 2017, according to U.S. Census Bureau data.