U.S. President Donald Trump has ordered additional 10 percent in tariffs on $200 billion in Chinese imports, further escalating the trade dispute between the world's two largest economies while relieving the market's worst fear that the U.S. administration would follow through with more punitive measures.
The U.S. originally threatened to impose tariffs at a 25 percent rate but will now only do so if trade negotiations between the two countries fail to make progress, according to a statement posted to the website of the U.S. Trade Representative on Monday evening U.S. time. The 10 percent tariffs are set to take effect Sept. 24.
"The increase in the possible rate of the additional duty is intended to provide the administration with additional options to encourage China to change its harmful policies and behavior and adopt policies that will lead to fairer markets and prosperity for all of our citizens," read the statement.