After putting into effect his previous plan for tariffs on Chinese imports worth $50 billion last week, US President Donald Trump announced today that another $200 billion worth of goods from China might soon face a 10% tariff.
According to the White House, this surprising new decision is a direct response to China’s $50 billion tariffs on US goods. Nevertheless, China’s fees were only enacted as a reaction to Trump’s first round of tariffs. With a second wave of fees aimed at China, it is possible that the Asian country will retaliate and impose more reactive tariffs on US goods, creating a vicious economic circle between the two largest economies in the world.
This most recent information from Trump actually had a negative effect on the stock market and the US dollar. China officially stated they will fight back, no matter how many times they are slapped with tariffs, and levy a proportional fee on American goods. The Chinese government also accused the United States of being too aggressive and pushing for a trade war, disregarding international trade agreements reached in the past.
