On Friday, President Trump brought new tariffs against $200 billion in Chinese goods, marking the third round of tariffs from the President against China.
MarketWatch reports that the Trump Administration’s latest move against Chinese exports, which takes effect June 1, accounts for about 50% of all Chinese exports to the U.S.
China’s Finance Ministry replied with tariffs on $60 billion in Chinese goods, mostly targeting agriculture. The move is said to be intended to target President Trump’s voter base. The President announced on Monday his aim to protect those farmers with $15 billion in aid to offset the Chinese tariff increases.
Stock markets took a knee with the news of new tariffs last week, with the industrial-heavy DOW declining 1.3% into early Monday.
Various Products Affected
Common electronics and appliances, like dishwashers and TVs, are among the consumer products affected by the trade war.
Larry Kudlow, the U.S.’ National Economic Council Director, said Presidents Donald Trump and Xi Jinping will likely speak at the coming G20 Summit next month.
In the meantime, the New York Times reported that certain industry trade groups viewed the President’s move unfavorably.
Rick Helfenbein, American Apparel & Footwear Association President, told the Times that the tariffs were a “self-inflicted wound.” Helfenbein, whose organization represents footwear companies, noted that the tariffs would affect those products for American consumers.
“…[T]he president has shown that he is not concerned with raising taxes on American families, or threatening millions of American jobs that are dependent on global value chains,” Helfenbein said.
President Trump’s tariffs came soon after renewed North Korean nuclear tests. President Trump openly stated on the campaign trail he would use China to gain leverage over North Korean nuclear tests, and China’s prior refusal to participate in trilateral nuclear negotiations may have contributed to the President’s third round of tariffs.
Recently, Director Kudlow called the tariffs a “risk we should take to correct 20 years of unfair trade.”