Scott Kennedy, a China expert at the Center for Strategic and International Studies, said that raising tariffs to 25 percent would put significant pressure on Chinese leaders to devalue their currency even further, causing further losses Compensate exporters. "We can expect further devaluation and intense internal debates over a one-time devaluation," said Kennedy.
$ 200 billion in Chinese goods worth 25 percent would come to $ 34 billion in addition to US taxes, which is already in place, and another $ 16 billion soon to come into force. China has promised to respond to trade measures in kind and has already set its own tariffs on American soybeans, pork, electric vehicles and other goods valued at $ 34 billion.
Congress passed laws on Wednesday strengthening national security controls on China's Chinese investment The United States, a method the government claims has won valuable American technology.
The Americans and the Chinese are discussing what to do next, but both sides still seem reluctant to show much enthusiasm for formal negotiations. At present, the discussion is mainly focused on whether more formal talks should be resumed.
Mr. Mnuchin casually spoke with the Chinese Group 20 delegation last week, saying that he had been in contact with Liu He, a senior Chinese official who would negotiate with the United States to see if he had plans to join the United States USA to come meet. However, China has decided not to send its highest-ranking officials, so there was no bilateral discussion, Mr. Mnuchin said.
China was looking for solutions that would end the trade, without the country having to make political concessions, according to people who are familiar with Chinese economic policy and who were not allowed to speak publicly, the country's future economic growth to limit.