WASHINGTON/BEIJING (Reuters) - U.S. President Donald Trump sought to ratchet up pressure on China for trade concessions by proposing a higher 25 percent tariff on $200 billion worth of Chinese imports, his administration said on Wednesday. Aerial view of containers at a loading terminal in the port of Hamburg, Germany August 1, 2018. REUTERS/Fabian Bimmer U.S. Trade Representative Robert Lighthizer said Trump directed the increase from a previously proposed 10 percent duty because China has refused to meet U.S. demands and has imposed retaliatory tariffs on U.S. goods. “The increase in the possible rate of the additional duty is intended to provide the administration with additional options to encourage China to change its harmful policies and behavior and adopt policies that will lead to fairer markets and prosperity for all of our citizens,” Lighthizer said in a statement. There have been no formal talks between Washington and Beijing for weeks over Trump’s demands that China make fundamental changes to its policies on intellectual property protection, technology transfers and subsidies for high technology industries. Two trump administration officials told reporters on a conference call that Trump remains open to communications with Beijing and that through informal conversations the two countries are discussing whether a “fruitful negotiation” is possible.”We don’t have anything to announce today about a specific event, or a specific round of discussions, but communication remains open and we are trying to figure out whether the conditions present themselves for a specific engagement between the two sides,” one of the officials said. Derek Scissors, a China scholar at the American Enterprise Institute in Washington, said a 25 percent tariff rate is more likely to shut out Chinese products and shift American supply chains to other countries, as a 10 percent duty could be offset by government subsidies and weakness in China’s yuan currency. “If we’re going to use tariffs, this gives us more flexibility and it’s a more meaningful threat,” he said, adding that Trump’s pressure strategy will not work if he does not resolve trade disputes with U.S. allies such as the European Union, Mexico and Canada. But the move drew swift condemnation from U.S. business lobby groups worried that tit-for-tat tariffs would start to hamper economic growth. “Escalating tariffs against China is the wrong approach to address legitimate concerns U.S. businesses have with China’s harmful practices,” said Myron Brilliant, head of international affairs for the U.S. Chamber of Commerce. “Each tariff escalation leads to further retaliatory action from China – ultimately inflicting even more harm on American businesses, workers, farmers, ranchers, and consumers.” PUBLIC COMMENTS EXTENDED The higher tariff rate, if implemented, would apply to a list of goods valued at $200 billion identified by the USTR last month as a response to China’s retaliatory tariffs on an initial round of U.S. tariffs on $34 billion worth of Chinese electronic components, machinery, autos and industrial goods. Trump has ultimately threatened tariffs on over $500 billion in Chinese goods, covering virtually all U.S. imports from China. The USTR said it will extend a public comment period for the $200 billion list to Sept. 5 from Aug. 30 due to the possible tariff rate rise. The list, unveiled on July 10, hits American consumers harder than previous rounds, with targeted goods ranging from Chinese tilapia fish and dog food to furniture, lighting products, printed circuit boards and building materials. China said on Wednesday that “blackmail” would not work and that it would hit back if the United States takes further steps hindering trade, including applying the higher tariff rate. “U.S. pressure and blackmail won’t have an effect. If the United States takes further escalatory steps, China will inevitably take countermeasures and we will resolutely protect our legitimate rights,” Chinese Foreign Ministry spokesman Geng Shuang told a regular news briefing. Investors fear an escalating trade war between Washington and Beijing could hit global economic growth, and prominent U.S. business groups, while weary of what they see as China’s mercantilist trade practices, have condemned Trump’s aggressive tariffs. SENATORS SEEK TARIFF LIMITS Trump also got more pushback on his tariff plans from the U.S. Congress on Wednesday as a bipartisan group of senators, led by Republican Rob Portman of Ohio, launched new legislation that would scale back the president’s power to impose tariffs for national security reasons under a Cold War-era trade law. The proposal would require a more robust justification from the Department of Defense for “Section 232” tariffs such as those imposed on steel and aluminum imports and those now under consideration for autos. It would also give Congress more oversight of the process. The move signals displeasure among Trump’s own party over his protectionist actions, but chances of it becoming law are slim as Congress would likely need to override a presidential veto by Trump.<doc-sep>The Trump administration had initially announced a 10 percent tariff top stories direct to your inbox SUBSCRIBE Invalid email Sign up to receive our rundown of the day'sdirect to your inbox When you subscribe we will use the information you provide to send you these newsletters. Sometimes they'll include recommendations for other related newsletters or services we offer. Our Privacy Notice explains more about how we use your data, and your rights. You can unsubscribe at any time. An announcement could come as early as today, a source familiar with the plan said on Tuesday. The Trump administration had initially announced a 10 percent tariff on the $200billion on imported Chinese goods. Washington has already imposed 25 percent tariffs on Chinese goods worth $34billion. China immediately responded with its own tariffs on US goods worth $34billion. Also a second round of tariffs on products worth $16billion could take effect as soon as this week. US Trade Representative Robert Lighthizer revealed this month a list of thousands of additional Chinese exports worth $200 billion that could face 10 percent tariffs. It included fruit and vegetables, handbags, refrigerators, rain jackets and baseball gloves. But the tariffs may now be steeper and could go into effect as soon as September. Washington has already imposed 25 percent tariffs on Chinese goods worth $34billion US Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He are having private conversations as they look to re-engage in negotiations, Bloomberg reports. In a sign the trade standoff is affecting Chinese politics, the Politburo said on Tuesday that policy makers will focus more on supporting economic growth amid risks from a campaign to reduce debt and the dispute with Trump. It followed a meeting of the country’s most senior leaders led by president Xi Jinping. They said the campaign to reduce leverage will continue at a measured pace while improving economic policies to make them more forward-looking. Also a second round of tariffs on products worth $16billion could take effect as soon as this week<doc-sep>
The Trump administration plans to propose slapping a 25-percent tariff on $200 billion of imported Chinese goods after initially setting them at 10 percent, in a bid to pressure Beijing into making trade concessions, a source familiar with the plan said on Tuesday. President Donald Trump's administration said on July 10 it would seek to impose the 10-percent tariffs on thousands of Chinese imports. They include food products, chemicals, steel and aluminum and consumer goods ranging from dog food, furniture and carpets to car tires, bicycles, baseball gloves and beauty products. While the tariffs would not be imposed until after a period of public comment, raising the proposed level to 25 percent could escalate the trade dispute between the world's two biggest economies. The source said the Trump administration could announce the tougher proposal as early as Wednesday. The plan to more than double the tariff rate was first reported by Bloomberg News. There was no immediate reaction from the Chinese government. In July it accused the United States of bullying and warned it would hit back. Investors fear an escalating trade war between Washington and Beijing could hit global growth, and prominent U.S. business groups have condemned Trump's aggressive tariffs. A spokeswoman for the U.S. Trade Representative's Office declined to comment on the proposed tariff rate increase or on whether changing them would alter the deadlines laid out for comment period before implementation. In early July, the U.S. government imposed 25-percent tariffs on an initial $34 billion of Chinese imports. Beijing retaliated with matching tariffs on the same amount of U.S. exports to China. Washington is preparing to also impose tariffs on an extra $16 billion of goods in coming weeks, and Trump has warned he may ultimately put them on over half a billion dollars of goods — roughly the total amount of U.S. imports from China last year. The $200 billion list of goods targeted for tariffs — which also include Chinese tilapia fish, printed circuit boards and lighting products — would have a bigger impact on consumers than previous rounds of tariffs. Erin Ennis, senior vice president of the U.S. China Business Council, said a 10 percent tariff on these products is already problematic, but more than doubling that to 25 percent would be much worse. "Given the scope of the products covered, about half of all imports from China are facing tariffs, including consumer goods," Ennis said. "The cost increases will be passed on to customers, so it will affect most Americans pocketbooks." Trump had said he would implement the $200 billion round as punishment for China's retaliation against the initial tariffs aimed at forcing change in China's joint venture, technology transfer and other trade-related policies. He also has threatened a further round of tariffs on $300 billion of Chinese goods. The combined total of over $500 billion of goods would cover virtually all Chinese imports into the United States. The U.S. Trade Representative's office initially had set a deadline for final public comments on the 10 percent proposed tariffs to be filed by Aug. 30, with public hearings scheduled for Aug. 20-23. It typically has taken several weeks after the close of public comments for the tariffs to be activated.