Donald Trump, the President of the United States of America, is preparing to reveal new tariffs that are set to be imposed on the imports from China that are worth $200 billion (£153 billion).
Citing sources from the White House, the Wall Street Journal reported that tariffs of approximately 10 percent are set to be imposed on electronic goods including printed circuit boards, internet technology products, and other electronics. The report said that a decision would likely be announced as soon as tomorrow.
The administration of Trump has targeted the large trade surplus of China with the United States of America. It believed that a reduction of the surplus will keep manufacturing jobs within the borders of America.
The administration has also raised some concerns with the forced transfer of intellectual property. Foreign companies in China are now required to set up a joint venture instead of operating alone.
According to another report of the Wall Street Journal citing some sources from the Chinese government, the imposition of additional tariffs would likely result in the cancellation of further trade discussions that are supposed to be scheduled later this September.
Reportedly, Steven Mnuchin, the treasury secretary of the United States, had proposed a meeting around the 20th of September in an attempt to restart the trade discussions, even though that was undermined by the President.
On Thursday, Trump posted a tweet that the United States “will soon be taking in billions in tariffs” on various products from China. Previously, he has exhorted American firms such as Ford and Apple to manufacture their goods in the United States.
However, economists almost universally believe that the imposition of new tariffs will cause damage to the economy of the United States. Tariffs are usually believed to be produced for the most part by consumers through higher costs.