Economy

US May Not Impose More Tariffs on China

US May Not Impose More Tariffs on China

Washington expects Beijing to undertake a dramatic change in all of its policies to accommodate United States demands and is prepared for prolonged hostilities if it does not, Vice President Mike Pence reportedly said.

Trade tensions have escalated between Beijing and Washington this year as Trump has slapped $250 billion of Chinese products with new tariffs.

The U.S. tariff rate on $200-billion in Chinese goods is set to increase to 25 per cent from 10 per cent on January 1. He said the list of 142 items was "pretty complete" but "there are four or five big things left off".

Trump, who has made the United States economic relationship with China a centerpiece of his presidency, reiterated that he wants a deal both sides can be happy with.

Duty rates on a $200 billion in imports are due to rise to 25 percent from the current 10 percent, and Trump also is threatening to impose tariffs on another $267 billion of additional Chinese goods. "China would like to make a deal".

President Donald Trump speaks to business leaders at the Great Hall of the People, in Beijing, on November 9, 2017.

More news: John Lewis Christmas ad 2018 starring Elton John

Senior administration officials have argued that such negotiations by previous American presidents have resulted in Washington being outplayed by the Chinese, who have used the USA political calendar as an advantage.

This picture taken on November 6 shows a Chinese and US flag at a booth during the first China International Import Expo (CIIE) in Shanghai.

One person briefed on the list presented by Beijing this week said it wasn't clear that the Chinese were willing to make those sorts of concessions, especially after Republican losses in the House in this month's midterm elections.

The US wants China to offer concessions on a wide range of grievances, from intellectual property protection to territorial claims in the South China Sea.

"We have to have reciprocal trade", he said. As a result, he said, the best possible scenario for the Buenos Aires meetings was that Trump and Xi hand over the task of detailed negotiations to senior aides and that Trump put a time limit on any talks.

"I think we'll probably get them too", he added, speaking to reporters after a bill signing at the White House.