China's Commerce Ministry has threatened to strike back if Washington proceeds with a plan to increase tariffs on Chinese imports on Friday.
US President Donald Trump previously said in a statement on Wednesday that China is trying to make a trade deal with the United States, but if trade talks with Beijing fail, he will be happy because Washington will fill its coffers with billions of dollars from tariffs on Chinese goods.
"China has just informed us that they (Vice-Premier) are now coming to the US to make a deal", Trump said. "We'll see, but I am very happy with over $100 billion a year in tariffs filling US coffers… great for US, not good for China!"
….Guess what, that’s not going to happen! China has just informed us that they (Vice-Premier) are now coming to the U.S. to make a deal. We’ll see, but I am very happy with over $100 Billion a year in Tariffs filling U.S. coffers…great for U.S., not good for China!— Donald J. Trump (@realDonaldTrump) 8 мая 2019 г.
Meanwhile, a notice posted in the Federal Register revealed on Wednesday that the Trump administration will increase tariffs on $200 billion worth of Chinese goods from 10 percent to 25 percent effective 10 May.
"In accordance with the direction of the President, the US Trade Representative (Trade Representative) has determined to modify the action being taken in this Section 301 investigation by increasing the rate of additional duty from 10 percent to 25 percent for the products of China covered by the September 2018 action in this investigation", the notice said. "The rate of additional duty will increase to 25 percent with respect to products covered by the September 2018 action on May 10, 2019".
China and the United States have been engaged in a trade dispute since last June, when Trump announced that the United States would subject $50 billion worth of Chinese goods to 25 percent tariffs in a bid to fix the over $400 billion US trade deficit with China. Since then, the two countries have exchanged several rounds of trade tariffs.