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Donald Trump said on Thursday that he would impose an additional 10 percent fee on imports from China and print ahead with Mexico and Canada taxes next week, raising the spectrum of a global trading war.
The president had banned his proposed tariffs in Mexico and Canada earlier this month, just hours before they began, giving the two largest US trading partners a month back.
But in a post on social truth on Thursday, Trump wrote: “The proposed planned tariffs go into force in the fourth March will, indeed, come into force, as planned.”
The president added that he also planned to hit China with an additional 10 percent tax on March 4, top 10 percent of the fees he imposed this month.
Trump said his plan for all “reciprocal” tariffs, discovered this month and touching places and products around the world, would go ahead as planned on April 2.
“China will also be charged with an additional 10% fee on that date. The date of the second April fee will remain in full strength and effect, “Trump wrote.
Following Trump’s latest threat, China’s offshore Renminb weakened 0.3 to RMB7.289 against the dollar. The dollar climbed 0.6 percent higher against a basket of other main currencies.
The Canadian dollar was 0.5 percent to the dollar while the Mexican pesso also fell. S&P 500, which the future had suggested would open above, was reduced 0.1 percent in early trading.
Trump’s remarks are the latest Salvo in the aggressive trade policy that his administration has pursued since entering the White House in January. They increase the risk of a wider trade war that risks causing significant damage to the global economy.
Possible damage would deepen if Trump decides to move forward with 25 percent fees for EU products, which he threatened on Wednesday.
The latest intervention of the US president comes after Sir Keir Starmer, the Prime Minister of the United Kingdom, is set to visit with the White House on Thursday. The United Kingdom is in danger of being hit by Trump’s “reciprocal” tariff plan, and trade is expected to be discussed during the meeting.
Trump’s comments on Thursday mark a noticeable overthrow of his remarks on Wednesday, when he said taxes in Canada and Mexico would come into force on April 2, suggesting a possible delay.
His last push for fees to take effect on March 4 – the day he is planned to address a joint congress session – is likely to cause a diplomatic hurry to try to stop measures over the next few days.
A high -level delegation of Mexico officials will visit Washington on Thursday to meet US Secretary of State Marco Rubio to discuss security cooperation.
The new tariff in China marks a 10 percent escalation of the Trump tax last month, which was intended to pressure Beijing to hit the groups that exported the chemicals used to do fentanil.
Over the past month, Beijing has tried to ascertain whether Trump wants to negotiate a close trade agreement or a more comprehensive agreement with China.
Chinese officials and government advisers have informally signaled that Beijing would be willing to buy more US products to reduce the trade deficit between the two countries.
They have also said that Chinese companies can invest in the US to create about 500,000 jobs, according to people familiar with the issue.
But both sides have not yet held any considerable talks on trade. Liu Pengyu, a spokesman for the Chinese Embassy at the US, said Beijing did not know who on the Trump team would run any trade talks.
The announcement of additional tariffs for China came a day after the Senate confirmed Jamieson Greer to serve as a representative of US trade. The Chinese Embassy in the US has been contacted for comment.
Additional reporting by Christine Murray to Mexico City
