By Derek Dong
“Trade talks are continuing, and during the talks the U.S. will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country…We look forward to continuing our positive dialogue with China on a comprehensive Trade Deal, and feel that the future between our two countries will be a very bright one!” Trump said in a tweet on Thursday.
The tariff announcement came after the U.S. and China restarted trade talks in Shanghai this week. The White House said Wednesday before this Trump tweet that the meetings were “constructive,” adding that China confirmed its commitment to increase purchases of U.S. agricultural exports. Trade negotiations will continue in Washington in early September.
It’s unclear what has caused Trump to end the trade war cease-fire with these new tariffs. Trump said later in the day that the new tariffs could be raised to above 25%.
The trade battle between the world’s two largest economies has dragged on for more than a year and a half. Trump shocked the markets in May by hiking tariffs to 25% from 10% on $200 billion in Chinese goods. China immediately retaliated and said a trade deal will not be reached unless the existing duties were stripped.