Top U.S. trade official accuses China of "reneging" on pledge

/ CBS/AP

Trump to raise tariffs on Chinese goods

A top U.S. trade official on Monday accused the Chinese government of "reneging on prior commitments," raising the stakes ahead of a planned meeting this week aimed at resolving the countries' dispute over trade.

U.S. Trade Representative Robert Lighthizer also said the higher tariffs on China that President Donald Trump threatened over the weekend will take effect at 12:01 a.m. Eastern time Friday. Trade talks with Chinese officials will resume on Thursday in Washington, leaving little time to defuse the conflict before the proposed levies take effect.

Mr. Trump on Sunday threatened over Twitter to more than double tariffs on $200 billion in Chinese products from 10 percent to 25 percent. He also vowed to impose levies on another $325 billion in Chinese imports, covering everything China ships annually to the U.S.

Trending News

Concerns that the trade talks could collapse roiled global markets, with U.S. stocks falling sharply in early trade before regaining ground later in the session.

"President Trump's credible threat to impose higher tariffs on China along with the negative confidence shock to financial markets represents a significant risk for U.S. households and businesses at a time when global headwinds remain a lingering concern and fiscal stimulus is dissipating," Greg Daco, chief U.S. economist with Oxford Economics, said in a research note.

A recent study by economists from the Federal Reserve Bank of New York, Columbia University and Princeton University found that the burden of Mr. Trump's tariffs fell entirely on U.S. consumers and businesses that buy imported products. By the end of last year, companies were paying $3 billion a month in higher tariffs and absorbing $1.4 billion a month in higher costs, the researchers concluded.

First published on May 6, 2019 / 6:11 PM

© 2019 CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

Top U.S. trade official accuses China of "reneging" on pledge

Just days before scheduled talks, U.S. Trade Representative says Beijing is going back on "prior commitments"

10M ago

Uber drivers offered 3 percent of IPO shares

Those who qualify can also earn bonuses up to $10,000, but drivers still plan to strike for better pay on May 8

26M ago

Tyson Foods sees benefits as swine fever ravages Chinese hog farms

CEO Noel White says the U.S. meat producer is "uniquely positioned" to profit as the disease sends pork prices up

1H ago

Uber, losing an average of 58 cents per ride, readies an IPO

The profitless company could be valued at up to $90 billion by Wall Street, or roughly twice the market cap of Ford

1H ago

"One Ring" robocalling scam wants you to call back

FCC warns consumers to beware scheme that connects unsuspecting callers to a 900 number

3H ago

Boeing CEO won't say 737 Max software design was flawed

Boeing chief Dennis Muilenburg spoke to the public for the first time since the Lion Air crash killed 189 people

Apr 29

Employment bounces back in March with 196K jobs added

After a disappointing February, strong job growth sends reassuring signals about the economy

Apr 5

How Facebook has dealt with a year's worth of crises

One year after the Cambridge Analytica scandal revealed unprecedented sharing of user data, Facebook still struggles with privacy issues

May 2

Fact checking Trump's State of the Union

Here's a look at the president's claims on foreign and domestic policy

Feb 6

Super Bowl commercials 2019: Watch the ads

Check out our rundown of some of the most creative, entertaining and memorable commercials from the big game, as well as those that failed miserably

Feb 3