Trade hawks have warned the White House against watering down plans to hit Beijing with 25 per cent tariffs on $200bn in imports, as the Trump administration prepared to unveil its most serious escalation yet in its trade war with China.
US officials have signalled they are likely to impose a new tariff rate of 10 per cent on about 40 per cent of all Chinese imports, but some inside the administration have been pushing for a 25 per cent rate for certain goods, according to one official familiar with the debate.
The lower rate would blunt the impact on US consumers and businesses, and leave some room for negotiations with Beijing, but Chinese officials have grown increasingly concerned the White House is unwilling to strike a trade truce until after November’s midterm congressional elections.