The White House is close to releasing a list of $200 billion worth of Chinese exports to the U. S. that could be hit with a new round of 10 percent tariffs.
President Donald Trump is nearing the release of another gargantuan round of tariffs on China according to a new report, kicking a burgeoning trade war into high gear.
According to Bloomberg, the Trump administration is set to release a list of Chinese exports to the US worth around $200 billion that could be subject to a new 10% tariff in the coming months. Trump first threatened the round of tariffs last month.
According to Bloomberg, the new list of goods could come as soon as Tuesday and will likely be released by the end of the week.
The tariffs would come in addition to Trump’s 25% tariffs on $50 billion worth of Chinese goods, tariffs on the first $34 billion worth of goods went into place on Friday. The second round, which will apply to around $16 billion worth of Chinese goods, is set to be imposed in the coming weeks. That second round will be derived from a list already released by the US Trade Representative.
The newest list’s release would trigger the formal process to implement the tariffs. The next step would be a comment period, during which businesses and consumers can raise issues with the inclusion of certain goods on the list.
If Trump goes through with his latest threat, roughly half of all Chinese imports to the US would be subject to increased duties.
In addition, Trump said that if the Chinese decided to counter the tariffs on $200 billion worth of goods, a fourth round of restrictions would hit another $200 billion worth of Chinese goods. In the event all threats are realized, Trump would have hit just over 80% of all Chinese exports to the US with tariffs.
The release of the $200 billion list would likely shift the trade conflict with Chia into an all-out trade war.
So far, Chinese officials have not backed off their promises to retaliate to any Trump tariff move. On Friday, the Chinese Ministry of Commerce said Trump started the “largest trade war in economic history.”
Economists warn that the back-and-forth tariffs will increase costs for consumers and discourage investment by businesses into new hiring and equipment. These decisions in turn will slow down the US economy.
Following the release of the news, futures for all three major US stock indexes tumbled into negative territory.
NOW WATCH: North Korean defector: Kim Jong Un ‘is a terrorist’