The 25% tariff on $200 billion in Chinese imports went into effect Friday. Here’s what you need to know about the U. S. trade war with China.
The Trump administration early Friday more than doubled a U. S. tariff on $200 billion in Chinese imports, from 10% to 25%, sharply escalating a trade war between the two countries. The president also threatened to slap a 25% tariff on almost all the remaining $325 billion in goods shipped in from China.
Negotiators for the United States and China ended a session of trade talks in Washington on Friday without an announcement of an agreement, hours after the new tariff hike took effect.
USA TODAY economics reporter Paul Davidson takes a look at how the tariffs will affect U. S. shoppers and the economy.
White House officials say U. S. and Chinese negotiators were close to an agreement to resolve their trade fight but then China backed out, refusing to codify the deal in Chinese law.
Administration officials want China to stop stealing U. S. intellectual property and forcing companies to hand the IP over to do business in China. They also want the Chinese government to stop subsidizing the country’s manufacturers, giving them what the U. S. considers an unfair advantage. And they want China to open its markets more U. S. products and services. Tariffs theoretically prompt U. S. businesses to shift from Chinese to American and other suppliers, hurting China’s economy and prodding its government to make concessions.
The duty went into effect at 12:01 a.m. ET Friday and affects U. S.-bound goods that leave China after that time, not shipments in transit.
It affects more than 5,000 goods, including industrial chemicals, electronic circuit boards and a range of consumer products. Affected products include a variety of furniture, clothing, electronics, handbags, luggage, hardware, bicycles and bicycle helmets, shampoo, perfume, dishes, bed sheets, meat and cereal.
Almost certainly. American retailers and manufacturers were largely able to absorb the 10% tariff — narrowing their profit margins — negotiate offsetting price cuts with Chinese suppliers, import a big stockpile of goods before the tariff took effect, and spread the added cost across many products.
