Donald Trump announced Thursday he will hit China with $300 billion punitive tariffs in goods, prompting Beijing to warn it was the wrong way to resolve the trade war.
Trump’s move jolted US and Asian stock markets and came just a day after US and Chinese trade negotiators revived talks aimed at ending the year-long dispute.
The announcement means virtually all of the $660 billion in annual trade between the world’s two biggest economies will have tariffs on it.
The 10 percent duties will take effect September 1, and come on top of the 25 percent tariffs on $250 billion in imports already in place.
“The 10 percent is… for a short-term period and then I can always do much more or I can do less, depending on what happens with respect to a deal,” he said at the White House, adding, “it could be lifted up to well beyond 25 percent.”
After resuming face-to-face talks in Shanghai this week, trade negotiators were set to reconvene in Washington in early September for another round of discussions, which means they will take place just after the new tariffs take effect.
“Slapping on tariffs is definitely not a constructive way to resolve economic and trade frictions, it’s not the correct way,” Chinese Foreign Minister Wang Yi said in brief remarks on the sidelines of a regional meeting of top diplomats in Bangkok on Friday.