This week around the world, troubles continue with further escalation of the trade wars.
Late yesterday, President Trump announced an additional tariff on $200 bn more in Chinese manufactured goods for an additional 10%. This latest round of tariffs will hit nearly all US exports left from China. Total exports from China to the US are $505 bn, with the recent announcement the US is now planning to increase tariffs on $450 bn of that $505 bn. According to reports, prior tariffs have not specifically targeted consumer goods. However, with further escalation the latest planned tariffs with certainly affect consumer products including luggage, tires, dog leashes, baseball gloves, furniture, clothing, mattresses, electronics and other items., this latest round is being heavily criticized on a widespread basis. Even parties these are intended to help are calling this action reckless and beyond logic.
China has about seven weeks to determine how they will respond; either to negotiate or to hold firm in their position with the potential for additional retaliatory tariffs on US goods. The China Commerce Ministry said Tuesday that it would be forced to take action against “Totally unacceptable” US Tariffs.