New tariffs that would target China’s automobile trade policies could be ahead, the White House announced Wednesday.
The threat further escalates tensions between the countries just two days before President Trump is set to meet with Chinese President Xi Jinping in Argentina to discuss trade policy.
U.S. Trade Representative Robert Lighthizer said in a statement that the U.S. had repeatedly raised concerns over China’s trade policies and their effect on U.S. manufacturing but had gotten no proposals for meaningful reform and so “all available tools” were being considered to respond.
[Related: Senate Democrats urge Trump not to back off China in meeting with Xi Jinping]
“China’s policies are especially egregious with respect to automobile tariffs. Currently, China imposes a tariff of 40 percent on U.S. automobiles. This is more than double the rate of 15 percent that China imposes on its other trading partners, and approximately one and a half times higher than the 27.5 percent tariff that the United States currently applies to Chinese-produced automobiles. At the President’s direction, I will examine all available tools to equalize the tariffs applied to automobiles,” Lighthizer said.
Trump will meet with Xi Jinping as part of the G-20 Summit Friday. A lot may ride on the meeting. On Monday, Trump reiterated a threat to go forward with additional tariffs on Chinese goods, on top of the tariffs on $250 billion worth of goods it has already instituted. “If we don’t make a deal, then I’m going to put the $267 billion additional on,” Trump said.
