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Trump says tariffs on Chinese goods will increase to 25% on Friday

Trump says tariffs on Chinese goods will increase to 25% on Friday

Under the Trump administration, the United States increased tariffs on roughly half of its imports from China a year ago, while China retaliated with tariffs on more than 70 per cent of its imports from the United States, according to tracking by Chad Bown, a senior fellow at the Peterson Institute for International Economics.

Trump tweeted Sunday that tariffs on $200 billion of Chinese goods will rise from 10 percent to 25 percent on Friday and that additional tariffs on $325 billion worth of now untaxed goods will be imposed at a rate of 25 percent "shortly".

"The Tariffs paid to the United States of America have had little impact on product cost, mostly borne by China", he tweeted.

Mr Trump tweeted that tariffs of 10 percent on certain goods would rise to 25 percent on Friday, and $325bn of untaxed goods could face 25 percent duties "shortly". 'The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. Mr. Trump repeated a threat to raise the rate on existing tariffs and tax almost all of China's exports to the United States.

Trump charged that previous administrations, gullible and weak, had let China get away with abusive trade practices, accepting empty promises from Beijing and allowing the U.S.

Trump's action came as a major Chinese delegation is expected to arrive in Washington Wednesday for the latest round of talks to end the trade war between the world's two biggest economies. If Trump makes good on his threat, the 10% tax that's been on hold since January 1 will jump to 25% - likely sparking retaliation from Beijing.

The romance faded. In March 2018, the Office of the U.S. Trade Representative issued a report accusing China of using predatory tactics to strengthen its tech companies. But Trump and Chinese leader Xi Jinping agreed to a truce in December to refrain from further escalation.

Negotiations about tariffs have been one of the remaining sticking points between the two sides.

Trump says he wants to reduce the huge USA trade deficit with China, which in 2018 totaled $378.73 billion with services trade included.

Last July, the Trump administration gradually started slapping import taxes on Chinese goods to pressure Beijing into changing its policies. Several studies released in recent months have showed that tariffs are being passed on to American consumers in the form of higher prices on imported goods.

Bloomberg Economics chief economist Tom Orlik said: "It's possible talks are breaking down, with China offering insufficient concessions, and an increase in tariffs a genuine prospect".