WASHINGTON (Reuters) – The Chinese government may decline to participate in proposed trade talks with the United States later this month if the Trump administration moves forward with additional tariffs on imported Chinese goods, the Wall Street Journal reported on Sunday, citing Chinese officials.
The US had proposed the talks, but at the same time moved forward with planning additional tariffs on some $200 billion of Chinese products, the Journal reported.
The report quoted one senior Chinese official saying the country would not negotiate “with a gun pointed to its head.”
Other officials who advise the country’s leaders are suggesting China impose limits on the sale of parts and supplies needed by US businesses, using “export restraints” to threaten their supply chains.
Fresh trade talks had been proposed by Treasury Secretary Steven Mnuchin to begin around Sept. 20.
Though China had begun discussing plans to attend, but began rethinking whether to attend because of the possibility new tariffs may be announced this week.
Tariffs on $200 billion on Chinese imports could come as early as Monday
On Saturday, a senior administration official told Reuters that US President Donald Trump was likely to announce new tariffs on about $200 billion on Chinese imports as early as Monday.
The tariff level will probably be about 10%, the Wall Street Journal reported, quoting people familiar with the matter. This is below the 25% the administration said it was considering for this possible round of tariffs.
The White House did not immediately respond to Reuters’ request for comment.
The upcoming tariffs will be on a list of items that included $200 billion worth of internet technology products and other electronics, printed circuit boards, and consumer goods including Chinese seafood, furniture, and lighting products, tires, chemicals, plastics, bicycles, and car seats for babies. It was unclear if the administration will exempt any of the products that were on the list, which was announced in July.
On Friday, White House spokeswoman Lindsay Walters said Trump “has been clear that he and his administration will continue to take action to address China’s unfair trade practices. We encourage China to address the long-standing concerns raised by the United States.”
Trump had already directed aides to proceed with tariffs, despite Treasury Secretary Steven Mnuchin’s attempts to restart trade talks with China.
One observer in the business sector said the administration may have reduced its planned tariff level after hearing public comments, hoping companies would not immediately hike prices for consumer goods to pass along the costs. Still, the additional tariffs could complicate trade talks with China expected later this month.
Trump has demanded that China cut its $375 billion trade surplus with the United States, end policies aimed at acquiring US technologies and intellectual property and roll back high-tech industrial subsidies.
This week, the world’s two largest economies appeared to be making progress on trade. The Treasury invited senior Chinese officials, including Vice Premier Liu He, for more talks.
The administration has already levied duties on $50 billion worth of Chinese goods following a study on China’s intellectual property practices released earlier this year.
On September 7, Trump warned that he had further tariffs ready to go on $267 billion worth of Chinese imports beyond those that will be targeted this week. If all of the tariffs were invoked, total imports from China facing tariffs would exceed the $505 billion in goods that the United States imported from China last year.
This year, imports from China through July were up nearly 9% from the same period of 2017, according to US Census Bureau data.
