President Donald Trump said he would impose a 10% tariff on $300 billion in Chinese imports that aren’t yet subject to US duties after setbacks in trade negotiations between Washington and Beijing.
The new tariff will be imposed beginning September 1, he said in a tweet. Another $250 billion in Chinese goods are already subject to a 25% US tariff.
Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer returned from talks with Chinese counterparts in Shangai this week without reporting much progress. Negotiations have been at an impasse since May after the US said the Chinese reneged on provisions of a tentative deal.
US stocks pared gains on the news, while yields on 10-year Treasuries fell to the lowest since 2016.
Trump and Chinese President Xi Jinping met at the Group of 20 summit in Osaka, Japan in June in what the US said was an effort to get the talks back on track. But Trump said that China failed to fulfill a handshake agreement with Xi to buy more US agricultural products.