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US Senate Contemplating Stiff Tariffs On Chinese Exports

The U.S. senate is considering increased tariffs on Chinese exports if Beijing does not raise the value of its currency and ease pressure on the dollar.

A proposal, expected to be introduced later Thursday would give China six months to re-value the yuan or face a possible 27.5 percent duty on exports to the United States.

The Bush Administration says the yuan, which is fixed to the U.S. dollar, is grossly under-valued, thus keeping China's exports artificially cheap, undermining U.S. exports and putting many Americans out of work.

Analysts say the currency issue is likely to be discussed at a meeting beginning Friday in London of finance ministers from the Group of Seven Industrialized nations.

Some information for this report provided by AFP and AP.