Trump to raise tariffs on $200 bn of China goods

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To press China even more to accept United States demands, Trump also threatened again to slap tariffs on all Chinese imports to the United States - worth $539.5 billion a year ago.

The move increases pressure on China as Vice-Premier Liu He prepares to travel to Washington this week to resume negotiations.

"The Trade Deal with China continues, but too slowly, as they attempt to renegotiate", Trump said in his tweet.

Some $325bn of untaxed goods will also face 25% duties "shortly", he said.

This week, the two sides were scheduled to meet in what would have been a final round of talks before a potential deal.

Trump also raised the possibility of imposing a 25 per cent tariff on another US$325 billion in imports from China not now covered.

Despite the happy talk from Trump and others in recent days, the United States has become frustrated with China's backpedalling on some of its earlier commitments, including on the crucial matter of technology transfer, two people familiar with the situation said.

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Washington and Beijing have engaged in reciprocal tariff hikes over the past year while negotiators have engaged in lengthy trade talks, alternating negotiations between the two capitals. China retaliated by levying tariffs amounting to some $110 billion on USA goods.

Vice President Mike Pence said Friday that Trump is prepared to impose even more tariffs if no deal is reached.

But in December, on the sidelines of the G-20 summit, Trump and Xi agreed to a 90-day truce, in which Beijing promised to import more US agriculture and energy products, and crack down on illegal fentanyl coming into the United States.

According to National Economic Council Director Larry Kudlow, President Trump is issuing a warning to China before Wednesday's meetings, the Washington Post reported. Meanwhile, the US side promised not to escalate the tariffs.

USA officials have been seeking assurances from China that it would crack down on IP theft, end forced technology transfer policies, open its markets to American companies, and decrease the U.S. "China has got to end its unfair, nonreciprocal trading system".

The administration has been insisting on a mechanism to ensure that China follows through on any promises to purchase more American goods.

The fight between the world's two biggest economies is raising worries about global economic growth. Instead, U.S. officials would strike a deal that would prevent tariffs from going higher.

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