The US President Donald trump has announced the new fee in the amount of 10% for another $ 300 billion of Chinese goods on September 1. The move is the latest salvo in the escalating trade war between the two countries, BBC reports.
Investors anxiously reacted to the news. On wall street index Dow Jones fell sharply by about 1%.
Trump criticized Twitter for failing China promises to buy more American agricultural products and attacked the President of China XI Jinping for failing to do more to stop the sale of synthetic opioid fentanyl.
In later remarks, the President told reporters that the 10 percent tariff is a short-term measure, and that rates could be gradually increased to more than 25 percent.
The new collection can affect a wide range of products, from smart phones to children’s clothing.
The last round of increases in fees comes amid growing concern that trump’s strategy is counterproductive and does more harm to the USA than China.
On Thursday, former chief economic adviser to trump Gary Cohn said in an interview with the BBC that the tariff battle has had a “dramatic impact” on U.S. trade and investment.
The resulting tension has also affected the US Central Bank, the Federal reserve, which for the first time in a decade has cut interest rates on Wednesday.
The fed Chairman Jerome Powell said that to criticize the trade policy of the United States is not the task of the fed, but added that in may and June, the trade tension “almost escalated”.
Negotiators of the US and China concluded its latest two-day meeting in Shanghai on Wednesday with little sign of progress, although both countries described the talks as constructive. The next round of talks scheduled for September.