According to new reports, the US is considering 25% tariffs on $200 billion of Chinese goods, much higher than the 10% it previously indicated it might impose.
The plan could be announced as early as August 1, but a higher tariff was not finalized, sources told media.
The measure would risk further escalating tensions between the US and China which are already mired in a trade war.
Last month, the US published a list of $200 billion worth of additional products to be taxed as early as September.
The list named more than 6,000 items including food products, minerals and consumer goods such as handbags.
The US opened fire in a trade war with 25% tariffs on $34 billion of Chinese goods, and China retaliated in kind.
US threats have escalated since, with President Donald Trump saying he is ready to slap tariffs on all $500 billion of Chinese imports.
The US accuses China of intellectual copyright theft and wants to bring down its lofty trade deficit with the world’s second largest economy.
However, the trade dispute is also seen as part of a broader tug of war between the two powerhouses for influence on the world stage.
On July 30, Secretary of State Mike Pompeo announced a plan to spend $113 million in Asia, a move that was widely seen as an attempt to counter China’s growing influence in the region.
According to Bloomberg, which was the first to report the news of the higher tariffs, US and Chinese officials were having private conversations as they sought to resume negotiations.
The US is also expected to soon announce tariffs on the remaining $16 billion of the $50 billion of Chinese goods the US originally planned to tax.
A public hearing on the second round of tariffs took place last week and the USTR has a July 31 deadline for post-hearing comments.
China’s imports fell a more-than-expected 17.7% in yuan-denominated terms in September 2015, while exports fell 1.1% from a year earlier, official figures show.
The new figures leave China with a trade surplus of 376.2 billion yuan ($59.4 billion).
The steep fall in imports compares with a fall of 14.3% in August and continues to reflect lower commodity prices globally.
China recently revised down its 2014 economic growth from 7.4% to 7.3%.
The revision marks its weakest growth for almost 25 years. After decades of double-digit growth, the government is expecting to see growth of about 7% in 2015.
China is attempting to shift from an export-led economy to a consumer-led one.
Exports in September held up better than expected, after some had forecast a fall of as much as 7%.
However, the significant fall in imports means domestic demand is not as strong as the government would have hoped.
China’s official trade numbers in US dollar denominated terms were reported shortly after the yuan-denominated numbers.
They showed exports fell a less-than-expected 3.7% in September, while imports slumped 20.4% from a year earlier. The numbers leave the country with a surplus of $60.34 billion for the month – which the government said was higher than expected.
Currency conversion factors based on US dollar and Chinese yuan movements over the last year mean some official numbers from the mainland are now reported in both currencies.
According to latest trade figures, China’s August imports fell 14.3% in yuan-denominated terms from a year ago, while exports fell by 6.1%.
The steep fall in the value of imports reflects lower commodity prices globally, particularly crude oil.
The numbers mean China’s monthly trade surplus expanded by close to 40% from the month earlier to 368 billion yuan ($57.8 billion).
China recently revised down its 2014 economic growth from 7.4% to 7.3%, its weakest for almost 25 years.
In US dollar denominated terms, exports for the month of August fell 5.5% from a year earlier – slightly less than expected – while imports fell by 13.8%, leaving China with a surplus of $60.24 billion.
Currency conversion factors based on US dollar and Chinese yuan movements over the last year mean some official numbers from the mainland are now reported in both currencies.
A fall in both import and export figures had been expected as China’s economy slows, though analysts said the drop in imports was greater than forecast.
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