April 6, 2018
President Donald Trump on Thursday night threatened another escalation in a rapidly escalating trade battle with China, which then vowed to retaliate. The White House said in a statement that Trump was considering new tariffs on $100 billion worth of annual imports from China. That follows the Office of the US Trade Representative's announcement earlier this week of plans for tariffs on $50 billion in Chinese products. "In light of China's unfair retaliation, I have instructed the USTR to consider whether $100 billion of additional tariffs would be appropriate under section 301 and, if so, to identify the products under which to impose such tariffs," the White House statement said. On Tuesday, the US trade representative announced a list of roughly 1,300 Chinese goods worth $50 billion annually that would be subject to new US tariffs, which function as taxes on imports. The US also previously announced tariffs on Chinese steel and aluminum.
China responded to this week's plans by announcing tariffs on $50 billion worth of American goods, including soybeans, the largest agricultural export to China from the US. The tariffs will have consequences for a wide swath of American consumers and businesses. The USTR has said the measures are retaliation for Chinese intellectual property theft. But they could also have serious consequences for businesses that use the goods from China — as well as consumers who buy those goods.Responding on Friday, China's ministry of commerce said it would immediately retaliate if the US imposed the sanctions. It said the country would not rule out any options.
