US to proceed with tariffs on Chinese goods with more set to follow

US President Donald Trump looks set to push ahead with controversial tariffs on Chinese goods in a move that could prove the opening salvo in a long-feared trade war.

According to the Financial Times, the President has approved a plan to proceed with up to US$50 billion of tariffs on Chinese imports as part of US efforts to pressure Beijing over intellectual property infringements.

Reuters reports that the US has also drawn up a second list of Chinese products that will be targeted with new duties, as the White House works towards a $US100 billion tariff array against Beijing.

If implemented, the tariffs are likely to reverse all progress made in three rounds of recent trade talks. China has previously assured Washington that the duties would see it abandon an offer to reduce its trade surplus with the US, and all other agreements made to date.

China has also stated that it would respond to tariffs in-kind. Any escalation from there would constitute a trade war.

There are also geopolitical consequences, with CNBC highlighting the importance of China in the recent diplomatic breakthrough on the Korean Peninsula. President Trump, however, appears to be confident that his North Korea position is now strong enough to proceed with measures against China.

According to a source quoted by Reuters, “Trump no longer thought of China’s influence over North Korea as a compelling reason not to impose tariffs now that the United States had a direct line of communication with Pyongyang.”

The announcement confirming the implementation of tariffs is expected today (Friday).