U.S President Donald Trump has hit back at China by announcing new higher tariffs on imports – escalating a mounting trade war between the two nations.
Trump said Friday that he will boost tariffs on $550 billion worth of Chinese imports in the latest escalation of the trade war between Washington and Beijing.
The move follows China’s announcement earlier in the day that it would impose tariffs of 5% or 10% on $75 billion of U.S. goods and reinstate duties on American cars. The tariffs will take effect in two batches on Sept.1 and Dec. 15.
Prior to his tariff announcement, Trump ordered U.S. companies to “immediately start looking for an alternative to China”, sending stocks into a nosedive amid fears of an escalating trade war between the world’s top two economies that has already sent shockwaves through global markets.
He also heaped blame on Federal Reserve Chairman Jerome Powell, questioning whether he or Chinese President Xi Jinping “is our bigger enemy” while calling for the Fed to lower interest rates and pursue a policy of injecting cash into the U.S. economy.
China unveiled plans to increase duties between 5% and 10% on more than 5,000 US products including agricultural goods, aircraft and crude oil. It will also reimpose a suspended 25% duty on US car imports.
The new tariffs, set to affect about $75bn of US goods, will be imposed in two stages on 1 September and 15 December.