Trump imposes 30% tariffs on $250 billion of Chinese goods

US President Trump at the White House on August 1. Photo: AFP.

"China should not have imposed tariffs on $75 billion of U.S. goods. From October 1, $250 billion of Chinese goods that are subject to a 25% tariff will be taxed at 30%. The remaining $300 billion of goods, which were planned to be taxed from September 1 at 10%, will now be taxed at 15%," Trump said on Twitter on August 23.

Trump's move comes after China announced it would impose tariffs of 5-10% on $75 billion of U.S. goods between Sept. 1 and Dec. 15, stressing that it was "forced to act in response to U.S. measures."

US President Trump and Chinese President Xi Jinping agreed to a "trade truce" during a meeting on the sidelines of the G20 summit in Osaka, Japan at the end of June. However, tensions heated up again when Trump announced plans to impose tariffs on $300 billion of Chinese goods between Sept. 1 and Dec. 15, prompting Beijing to respond by stopping purchases of U.S. agricultural products.

The International Monetary Fund (IMF) warns that the trade war is slowing global growth and there are growing signs that the U.S. may be heading for a recession. However, Trump has remained tough on China, insisting that he is "destined to fight" China.

Bilateral trade talks will resume next month in Washington. However, observers say that it is difficult for the two sides to achieve a breakthrough as tensions become increasingly complicated.

Phuong Vu