Trump adds tariffs to $550 billion of Chinese imports in trade war reprisal

President Trump announced Friday on Twitter which tariffs on Chinese imports increases 5 percentage points in a tit-for-tat reaction to China’s plans to set new obligations on U.S. goods.

Approximately $250 billion of goods created by China and imported into the U.S. have a 25 percent deduction. This increase will push tariffs to 30% starting October 1, 2019. Trump also increased “List 4” tariffs from 10 percent to 15 percent. The List 4 Purchase, which impacts the 300 billion of Chinese imports, will go into effect September 1 and December 15.

…unjust Trading Relationship. China shouldn’t have set new Tariffs on 75 BILLION DOLLARS of all United States product (politically motivated!) . Beginning on October 1st, the 250 BILLION DOLLARS of goods and products from China, currently being taxed at 25 percent, will likely be taxed at 30%…

— Donald J. Trump (@realDonaldTrump) August 23, 2019

The growth in tariffs on Chinese imports follows news earlier Friday that China will impose $75 million worth of responsibilities on U.S. goods, beginning Sept. 1 and December 15. China’s foreign ministry said that it would restart tariffs on U.S. imports of automobiles and auto parts and place an additional 5% or more 10% tariff on food and agricultural products such as soybeans, coffee, whiskey and fish.

U.S. automakers Ford, GM, Fiat Chrysler Automobiles and Tesla all watched stocks fall in reaction to China’s fresh tariffs. Agricultural product businesses, the fabric industry as well as automakers that assemble vehicles at the U.S. for export to China will take the brunt of all China’s new tariffs. The move could force these businesses to raise prices, which may further dampen sales.

The president’s initial answer on Twitter to China’s decision sent the market into a tailspin. The Dow Jones Industrial Average drop by as much as 700 points prior to closing the day slightly down only 623 points in 25,628.60. The S&P 500 Index fell 75.84 points to end the day in 2,847.11 and the Nasdaq dropped 239.62 things to close 7,751.77.

Trump’s tariffs announcement came after markets closed Friday.

…Additionallythe residual 300 BILLION DOLLARS of goods and products from China, which was being taxed from September 1st in 10 percent, will be taxed at 15 percent. Thank you for your attention to this issue!

— Donald J. Trump (@realDonaldTrump) August 23, 2019

Buy Tickets for every event – Sports, Concerts, Festivals and more buy tickets