Trump heaps another 5% tariff on Chinese goods in latest tit-for-tat escalation


U.S. President Donald Trump on Friday lashed back at a new round of Chinese tariffs by heaping an additional 5% duty on some $550 billion in targeted Chinese goods in the latest tit-for-tat trade war escalation by the world’s two largest economies.

Trump’s move, announced on Twitter, came hours after China unveiled retaliatory tariffs on $75 billion worth of U.S. goods, prompting the president earlier in the day to demand U.S. companies move their operations out of China.

The intensifying U.S.-China trade war stoked market fears that the global economy will tip into recession, sending U.S. stocks into a tailspin, with the Nasdaq Composite down 3%, and the S&P 500 down 2.6%.

The growing economic impact of the trade dispute was a key reason behind the U.S. Federal Reserve’s move to cut interest rates last month for the first time in more than a decade.

“The president’s trade war threatens to push the economy into a ditch,” said Mark Zandi, chief economist at Moody’s Analytics. “The president is hoping that the Federal Reserve will … bail him out, but if he continues to pursue the war, the Fed won’t be up to the task.”

Among U.S. goods targeted by Beijing’s latest duties were soybeans, which will be hit with an extra 5% tariff starting Sept. 1. China will also tag beef and pork from the United States with an extra 10% tariff, as well as ethanol with an additional 10% duty from December 15.


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