Washington
The duties on Chinese goods were to go forward just after midnight, Trump told reporters on Air Force One on his way to Montana on Thursday. Another $16 billion of goods could follow in two weeks, Trump said, before suggesting the final total could eventually reach $550 billion, a figure that exceeds all of China’s annual goods exports to the U.S.
As of 12:01 this morning in Washington, U.S. customs officials were set to begin collecting 25 percent tariffs on Chinese imports of goods ranging from farming plows to semiconductors and airplane parts. It’s the first time the U.S. has imposed tariffs directly aimed at Chinese goods following months in which Trump accused Beijing of stealing American intellectual property and unfairly swelling America’s trade deficit.
The riskiest economic gamble of Trump’s presidency could spread as it enters a new and dangerous phase by imposing direct costs on companies and consumers globally. China has vowed to hit back in kind on goods ranging from American soybeans to pork, which may in turn prompt Trump to raise trade barriers even higher.
“Once these tariffs start going into effect, it’s pretty clear the conflict is real,” said Robert Holleyman, former deputy U.S. trade representative under President Barack Obama and now a partner at law firm Crowell and Moring LLP. “If we don’t find an exit ramp, this will accelerate like a snowball going down a hill.”
Recent U.S. tariffs on steel and aluminum antagonized fellow rich nations and drew return fire from the European Union and Canada.
Chinese stocks have taken a beating in recent weeks, entering a bear market, as concerns about the trade war have mingled with worries about China’s ability to control its debt and maintain growth.
