On Friday, August 23, China announced its plans to impose 5% to 10% tariffs on $75 billion of American products in response to Washington’s recent tariffs on $300 billion of Chinese products. China’s new tariffs will take effect in two stages, the first on September 1, 2019 and second on December 15, 2019. The new tariffs will affect items such as beef, small aircraft, and soybeans.
China also plans to revive a 25% tariff on U.S. automobiles and a 5% tariff on automobile parts that were lifted earlier this year. The tariffs on automobiles and parts will take effect on December 15, 2019.
Following China’s announcement, President Trump issued a series of tweets in which he encouraged American companies to manufacture products in the U.S. and to “start looking for an alternative to China.” In the same series of tweets, the President stated that he will respond to China this afternoon.
The U.S. and China are still expected to move forward with trade discussions in September, 2019.