In a new phase of the U.S.-China trade war, President Donald Trump announced that the United States will impose new 10 percent tariffs on an additional $300 billion worth of Chinese goods starting Sept. 1.

The new tariffs would build on existing measures so that, effectively, tariffs now would hit every product Americans import from China.

Trump announced the new tariffs in a series of tweets on Aug. 1, after meeting with U.S. trade officials who had reported on talks in China on a comprehensive deal. The Trump administration already had slapped a 25 percent tariff on $250 billion of Chinese goods.

The news generated reaction from business groups.

National Association of Manufacturers President and CEO Jay Timmons issued a statement saying that optimism levels of U.S. manufacturers "took a substantial hit in our latest survey, driven largely by uncertainties in trade policy."

Timmons called on China to sign "an enforceable, bilateral trade agreement that ends the uncertainty and levels the playing field for all manufacturers."

Timmons also said U.S. manufacturers understand that China cheats — including by stealing intellectual property and forcing transfers of technology and data — and said the trade group was the first to call for an enforceable trade agreement with China.

But Trump's moves have a cost.

"The administration's latest tariff action will certainly get [China's] attention, but it also has the attention of manufacturing workers in the U.S. and their families who are feeling the negative impact of current tariffs and will be made even less competitive with this new tax on trade. We trust that the administration has considered all of these short-term economic downsides as they reach for long-term improvement," Timmons said.

The Motor &  Equipment Manufacturers Association, which represents automakers, also stressed a need to address intellectual property issues.

"It was our hope that ongoing talks would lead to an agreement and allow the Trump administration to lift existing tariffs on $250 billion worth of Chinese inputs," MEMA said in an Aug. 1 statement, adding that the announcement on new tariffs "dashes this hope."

"These tariffs will negatively impact the U.S. economy and will serve as a thorn in the side of a global marketplace already under stress," the association said.

At the U.S. Chamber of Commerce, Myron Brilliant, executive vice president and head of international affairs, urged both countries to commit to progress before the new tariffs come into effect, and "remove all remaining tariffs as swiftly as possible."

"Raising tariffs by 10 percent on an additional $300 billion worth of imports from China will only inflict greater pain on American businesses, farmers, workers and consumers, and undermine an otherwise strong U.S. economy," Brilliant said.

source : www.plasticsnews.com