US to apply new 10% tariff on Chinese goods

US stocks have fallen after Donald Trump announced that his administration will impose a further 10% import tariff on around $300bn (£247bn) worth of Chinese goods.

The US president said the tariff would come into effect on 1 September, sending the Dow Jones Industrial Average down nearly 200 points soon after.

Companies that rely heavily on sales to China were also dragged down, with Apple going from a gain of 1.4% to a loss of 1.4%.

The yield on the 10-year Treasury dropped to 1.88%, its lowest level since the 2016 election.

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Mr Trump tweeted that despite US representatives returning home after “constructive” talks in China, during further talks on a trade deal “the US will start, on September 1st, putting a small additional tariff of 10% on the remaining $300bn of goods and products coming from China into our country.”

He added: “This does not include the $250bn already tariffed at 25%”

Mr Trump blamed China for not following through with buying farm goods in large quantities from the US, or stopping the export of the opioid Fentanyl.

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The US has already applied tariffs of 25% on $250bn worth of goods from China.

China then retaliated with $110bn tariffs on US goods, including agricultural products.

:: US-China trade war: How did it start and what does it all mean?

Sky News reported last month that fallout from the trade war saw China’s economic growth slow in the second quarter of the year to 6.2% – its weakest level since 1992 – down from the 6.4% achieved in the previous three months.

On the American side, Federal Reserve economists forecast in May that average US household will be left $831 (£656) worse off as a result of the most recent tariffs on Chinese goods, prior to Thursday’s announcement.

The New York Federal Reserve released its calculation after Mr Trump revealed a further $16bn (£12.6bn) aid package for US farmers hit by the conflict as of May – with soybean and beef producers among those feeling the worst losses to date.

Source: SKY NEWS

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