Treasury Secretary Scott Bessent is responding to China, which imposes a tariff of 84% on US goods, and a potential backup plan for a company that appears to be “closing” in light of the Chinese economy and tariffs.
China is currently increasing tariffs on US imports from 34% to 84% in response to President Donald Trump's mutual tariffs.
According to Chinese state media, the move is expected to take effect tomorrow, and comes as Chinese officials vow to fight the “end” amid the trade war with the US
“If the US insists on further escalating economic and trade restrictions, China has the company's will and abundant means to fight with the necessary measures,” China's Commerce Department wrote in a statement yesterday.
The escalation began last week when Trump first announced a 34% mutual tariff on China.
Trump's mutual tariffs, additional Chinese taxes will take effect
Chinese President Xi Jinping is shaking hands with President Donald Trump ahead of a bilateral meeting on the sidelines of the G20 Summit held in Osaka, Japan in June 2019. (Brendan Smialowski/AFP/Getty Images/Getty Images)
White House spokesman Karoline Leavitt said Tuesday that Trump imposed an additional 50% tariff on Beijing as China refused to lift retaliation tariffs.
This tariff was enforced in addition to the previously imposed 20% and 34% tariffs on China, resulting in 104% of the total US tariffs on Chinese products.
China refuses to return to tariffs after Trump threatens stricter measures
President Donald Trump holds a “mutual tariff” chart while speaking at the White House in Washington, DC on April 2nd (Chip Somodevilla / Getty Images / Getty Images)
Leavitt on Tuesday claimed that “all options are on the tables of the country” when it comes to dealing with the latest US tariffs, but Trump warned those retaliating, saying “there is a steel spine and he won't break.”
Leavitt said 70 countries have already contacted the president to begin negotiations since the announcement of Trump's “liberation day” tariffs.
China, led by President Xi Jinping, announced new tariffs on the US on Wednesday, April 9th. (Ton Molina/Bloomberg via Getty Images)
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“On the other hand, countries like China are trying to retaliate and double the abuse of American workers are making mistakes. President Trump has a steel spine so he won't break,” Levitt added.
Eric Revell from Fox Business contributed to this report.
