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China: U.S. to Increase Import Tariffs by 5 Percentage Points, Trump Says

2 MINS READAug 23, 2019 | 21:52 GMT

What Happened: The United States will increase tariffs on Chinese imports by five percentage points after Beijing announced retaliatory import duties on U.S. goods earlier in the day, U.S. President Donald Trump announced via Twitter on Aug. 23. Specifically, Washington will raise tariffs on an existing list of $250 billion worth of Chinese goods from 25 to 30 percent on Oct. 1 and impose new tariffs on another $300 billion of imports starting Sept. 1 at 15 instead of 10 percent.

Why It Matters: The new tariffs will unsettle global markets and increase economic costs as the reciprocal tariffs expand to consumer goods. Meanwhile, China will likely respond to the new tariffs by further weakening its currency, following through on its threat to blacklist certain U.S. companies under its "unreliable entity list" or restricting rare earth exports.

Background: Trump's announcement came after Beijing announced retaliatory tariffs on $75 billion worth of U.S. goods, including a 5 percent duty on soybean and crude oil imports starting Sept. 1 and an additional 25 percent tariff on U.S. auto imports on Dec. 15.

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