By William Mauldin 

WASHINGTON -- President Donald Trump threatened to sharply escalate a trade conflict with China, asking his administration to identify $200 billion in imported goods from China to be penalized with tariffs.

Mr. Trump's move comes after Beijing announced it would retaliate in kind to planned U.S. tariffs on $50 billion in imports from China. The U.S. president's latest plans, if carried out, would likely plunge the world's two biggest economies into a trade war.

"Unfortunately, China has determined that it will raise tariffs on $50 billion worth of United States exports," Mr. Trump said in a statement Monday evening, directing U.S. trade representative Robert Lighthizer to identify $200 billion more in products for tariffs of 10%.

"If China increases its tariffs yet again, we will meet that action by pursuing additional tariffs on another $200 billion of goods," Mr. Trump said.

It wasn't immediately clear how long Mr. Lighthizer's office would take to identify the new imports subject to tariffs. So far the tariffs aimed at China through a trade law known as Section 301 have been developed with opportunities for public comment and hearings in Washington.

The Trump administration last week finalized plans to slap tariffs on $50 billion in imports from China, accusing Beijing of violating U.S. intellectual property rights and stealing American firms' technology. Some of those tariffs -- which would add 25% to the price of the goods affected at the border -- are set to be implemented on July 6. China immediately followed by announcing proportional retaliation.

Mr. Trump has sought to use tariffs as a form of pressure to get China and other countries to come to the negotiating table and lower their barriers to U.S. exports and investment in the countries.

Mr. Trump's tariffs on Chinese-made goods, as well as on steel and aluminum tariffs from around the world, are prompting increased concern from businesses and Republican lawmakers. Many Democratic lawmakers applaud the use of tariffs as a tool to rein in China's behavior, but fault Mr. Trump for a "chaotic" policy.

Write to William Mauldin at william.mauldin@wsj.com

 

(END) Dow Jones Newswires

June 18, 2018 20:34 ET (00:34 GMT)

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