US reportedly planning tariffs on remaining $257 billion in Chinese goods if Trump-Xi talks fail
AFP Contributor | AFP | Getty ImagesChina's President Xi Jinping (L) and US President Donald Trump attend a welcome ceremony at the Great Hall of the People in Beijing on November 9, 2017. The United States is preparing new tariffs against all remaining Chinese imports if trade talks between Presidents Donald Trump and Xi Jinping fail to reconcile the ongoing trade dispute, according to Bloomberg News.
An announcement of new taxes against goods from China could occur as early as December and target the rest of the imports from the Asian nation that are not already subject to tariffs. The total would amount to about $257 billion worth, according to the Bloomberg report.
The U.S. stock market fell immediately after the report, with shares of global aerospace and aircraft maker Boeing falling 6.5 percent by the closing bell, its worst day on Wall Street since February 2016. The Dow Jones Industrial Average fell more than 200 points following the trade news, erasing a 350-point gain earlier in the session; the S&P 500 fell 0.6 percent.
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Trade war latest spooks markets, sending Dow down 600 points at lows 3 Hours Ago |05:50 The new tariffs, if enacted, would be the final step in the Trump administration's efforts to force Chinese leadership to the negotiation table through pressure on Chinese goods.
Asked for clarification on the new tariffs, Press Secretary Sarah Sanders said in a conference Monday afternoon that she's "not going to get ahead of the president's meeting and I hope it goes well." The United States Trade Representative's office referred CNBC to Sanders' response when asked for comment.
Sources familiar with the administration's plans later told CNBC's Eamon Javers that there are no new developments to the U.S.-China trade relationship.
The White House levied tariffs of 10 percent on $200 billion of Chinese products in September, with the rate set to increase to 25 percent by the end of the year barring a breakthrough in the trade talks. In response, Beijing said it would impose taxes on 5,207 U.S. imports worth about $60 billion.
The two nations had already imposed tariffs on $50 billion of each other's goods before the September sanctions. While China is targeting U.S. goods including coal, grease, Vaseline, asphalt and plastic products, the U.S. is taxing items such as appliances and furniture.
Click here for the full Bloomberg article.
CNBC's Kevin Breuninger contributed reporting.
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