Trade War Heats Up Again As China Sets Tariffs On $75 Billion In U.S. Goods, Autos
Updated at 9:47 a.m. ET
China says it will slap tariffs on autos, auto parts and thousands of other U.S. goods worth a total of $75 billion. Friday's announcement marks an escalation in a trade war that has rippled through the world economy and raised fears of a U.S. recession.
The first batch of tariffs will go into effect Sept. 1, and a second, on autos and auto parts, is due to go into effect Dec. 15. The tariffs range from 5% to 25%.
China's finance ministry called the new tariffs "a forced move to deal with U.S. unilateralism and trade protectionism."
U.S. stock markets were down slightly after China's announcement on Friday. The Dow Jones Industrial Average opened down about 100 points, or 0.4%.
Earlier this month, the Trump administration postponed until Dec. 15 new 10% tariffs on some imports from China that were due to take effect Sept. 1. They were part of a new set of tariffs on $300 billion worth of goods that triggered a sharp selloff in the U.S. stock market.
President Trump said the delay was intended to ease the effect on U.S. consumers during the holiday shopping season.
Last September, China set tariffs on $60 billion in U.S. goods in retaliation for U.S. duties.
The $75 billion in goods affected by China's latest tariffs would represent more than 60% of the $120.3 billion worth of U.S. goods exported to China last year.
U.S. and Chinese negotiators are due to meet in September for a new round of trade talks but have not yet confirmed a date.
NPR's Emily Feng contributed to this report. [Copyright 2019 NPR]