President Trump has instructed USA trade representatives to increase the tariffs it levies on around $200 billion of Chinese exports, from 10% to 25%, citing China's failure to address U.S. concerns over "unfair trading practices" that include "forced technology transfer and intellectual property theft".
Yet another reason that forced Trump's hand is that as several banks have recently pointed out, the Yuan devaluation to date has effectively offset the adverse impact to Beijing from the $34 billion in tariffs enacted on Chinese goods, mainly machinery and components (to which China retaliated with tariffs on the same amount of us exports, especially farm products).
On Thursday, a Chinese foreign ministry spokesman accused the White House of trying to "blackmail" China by pressuring them into an unfavorable trade deal.
Last month, the US proposed 10 percent tariffs on another $200 billion in Chinese products, a response to China's retaliation.
Though many different US industries have felt the sting from President Trump's trade dispute with China, Ross argues that American citizens understand the reasoning behind the tariffs.
Washington wants China to open its market more to U.S. products and stop harming American workers, one official said, speaking on condition of anonymity.
The White House had imposed tariffs on imports of steel and aluminium from the EU, drawing retaliatory levies on USA motorcycles, jeans and whiskey while prompting threats of even more measures from the White House, this time targeting the mighty European automotive sector. China upped the ante on Thursday in response to the Trump administration's latest move.
Trump, who has accused China and others of exploiting the United States in global trade, has demanded that Beijing make a host of concessions to avoid the new duties, which could be imposed in the weeks after a comment period closes on September 5.
But the president is losing his trade war based on Trump's own preferred statistic-U.S. the trade deficit-which has continued to grow both in overall terms and with respect to China specifically.
The US Senate last week passed legislation which if enacted would lower trade barriers on hundreds of Chinese imports. Global stocks took a tumble on Wednesday as news spread about USA plans for steeper tariffs. "Now, the U.S. coerces and pressures others unilaterally".
Among the 6,031 items on the most recent $200 billion list are 67 items on which the USA depends wholly on Chinese imports, the center said.
Officials, however, downplayed suggestions that the move was meant to compensate for the recent decline in the value of the Chinese currency, which has threatened to take much of the sting out of Trump's tariffs by making imports cheaper.
Canada's absence from this week's talks raised suspicions that the United States was pursuing a divide-and-conquer strategy with its two trading partners, isolating Canada to pressure it into agreeing with whatever the US and Mexico came up with.
The proposal would require a more robust justification from the Department of Defense for "Section 232" tariffs such as those imposed on steel and aluminum imports and those now under consideration for autos.