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U.S.-China Trade War Ramps Up as China Retaliates with Raised Tariffs

HeadlineMay 14, 2019
H3 us china trade war tariffs imports

China announced Monday plans to raise tariffs on $60 billion worth of U.S. goods starting June 1. The announcement came after the two nations failed to reach a deal as trade negotiations closed last Friday and as Trump followed through on his threat to hike tariffs on $200 billion of Chinese imports. Trump also says he plans to raise tariffs on the $325 billion worth of remaining Chinese imports. The stock market tumbled following the news, with the Dow dropping over 600 points Monday.
Trump told reporters Monday he would use some of the expected tariff revenue to help subsidize farmers, saying, “They can sell for less and make as much money until it’s straightened out. Our farmers will be happy.” Economists and Trump’s own economic adviser Larry Kudlow have refuted Trump’s claims that China will bear the economic brunt of the increased tariffs, saying U.S. consumers will in fact suffer the most.

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