Washington hikes tariffs on China trade to 25% on Friday

0
66

In the dry language of an official US government document, “effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time (EDT) on May 10, 2019, and exported to the United States on or after May 10, 2019” a 25% tariff on $200 billion worth of imports from China will be imposed, up from the current 10% rate.

Washington claims that in its “most recent negotiations, China has chosen to retreat from specific commitments agreed to in earlier rounds. In light of the lack of progress in discussions with China, the President has directed the Trade Representative to increase the rate of additional duty to 25%,” the document said.

The move, which has done much to unsettle Asian markets, follow a Sunday afternoon pair of tweets from President Donald Trump stating the existing tariffs will rise and new ones could be coming. The Office of the U.S. Trade Representative (USTR) has yet to issue a formal statement announcing the increase.

Government officials have told the media they may revisit the rise should trade talks get back on track, CNBC reported.