Trump threatens to raise tariffs on Chinese goods to 25 per cent, up from 10 per cent

The United States may jack up the tariff rate on the next USD 200 billion in Chinese imports it plans to target as it pressures Beijing to reform its trade practices, US officials has said.

President Donald Trump asked the US Trade Representative to consider increasing the proposed tariffs to 25 per cent from the planned 10 per cent, USTR Robert Lighthizer said yesterday.

"We have been very clear about the specific changes China should undertake. Regrettably, instead of changing its harmful behaviour, China has illegally retaliated against US workers, farmers, ranchers and businesses," Lighthizer said in a statement.

Officials however downplayed suggestions the move was intended to compensate for the recent decline in the value of the Chinese currency, which has threatened to take much of the sting out of Trump's tariffs by making imports cheaper.

The US dollar has been strengthening since April as the central bank has been raising lending rates, which draws investors looking for higher returns.

"It's important that countries refrain from devaluing currencies for competitive purposes," a senior administration official told reporters.

"But I wouldn't draw the conclusion that the announcement we're making today is directly linked to any one practice."