Trump announces China tariffs new hike

The US President Donald Trump announced on Thursday he will hike tariffs on some $300bn in Chinese goods to 10% starting on 1 September. The new US measures are on top of the 25% tariffs that have already been imposed incrementally over the past year on 250 billion dollars' worth of Chinese products.

Trump's announcement on Thursday followed talks between the world's two largest economies in Shanghai this week, the first time negotiators met since the president and his Chinese counterpart Xi Jinping agreed at the G20 in late June in Japan to pause further tariff hikes and return to the table, DPA reported.

Trump said the new tariffs could go "beyond 25%," though he was not currently planning to do so. He stressed the 1 September deadline was fixed and not a negotiating ploy. Trump also accused China of devaluing its currency. In announcing the new tariffs, he said China had retreated from its pledge to increase purchases of US agricultural products and reneged on a promise to stop the sale of Fentanyl, a synthetic opioid, to the US.

Trump insisted he had no intention of cancelling future rounds of trade talks, saying he looked forward to "positive dialogue" with China.

The tariff announcement comes just a day after the US Federal Reserve cut interest rates, citing a global slowdown and the uncertainties of the trade war, in particular the tariffs. Trump has been agitating for lower rates and speculation immediately mounted that the central bank may be forced to lower rates further to counteract the tariffs.

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