US administration ratchets up pressure on China, proposes 25% tariff on $250bn-worth of exports

America has ratcheted up the pressure on China even as representatives for the US Secretary of the Treasury and Chinese vice-premier Liu He are reportedly holding contacts aimed at trying to restart trade talks.

Overnight, Bloomberg reported that Donald Trump had instructed the US Trade Representative, Robert Lighthizer, a 'trade-hawk', to raise the proposed tariff on a further $200-bn-worth of Chinese-made goods from 10% to 25%, citing people familiar with the discussions within the US administration.

The public comment period for those levies was scheduled to end on 30 August and might not go through afterwards, the same people reportedly said.

Public hearings were scheduled for 20-23 August.

That was on top of the 25% tariff on $16bn-worth of Chinese goods that could go into effect as soon as Wednesday, after the public comment period for that expired at midnight on Tuesday, and the 25% tariff on $36bn-worth of goods which had already been implemented in early July.

Nevertheless, it was possible that the $16bn-worth of tariffs might be delayed for weeks as the US decided exactly which exports would be targeted.

In fact, Bloomberg reported that if China agreed to the concessions being asked of it then the White House might back-off from further tariffs.