US-China trade war: 25% tariff on $200bn of Chinese imports on Trump's mind

The Trump administration plans to propose slapping a 25-per cent tariff on $200 billion of imported Chinese goods after initially setting them at 10 per cent, a source familiar with the plan said on Tuesday.

President Donald Trump's administration said on July 10 it would seek to impose the 10-per cent tariffs on thousands of Chinese imports, ranging from food products and furniture to chemicals, steel and aluminium.

While the tariffs would not be imposed until after a period of public comment, raising the proposed level to 25 per cent could escalate the trade dispute between the world's two biggest economies.

The source said the administration could announce the tougher proposal as early as Wednesday.

In early July, the US government imposed 25-per cent tariffs on an initial $34 billion of Chinese imports. Beijing retaliated with matching tariffs on the same amount of US exports to China.