UPDATED 9:00 PM PT– Thurs. July 5, 2018
The U.S. and China appear to be growing closer toward a trade war, as President Trump confirms he will impose $34 billion in tariffs on Chinese imports, as the deadline for negotiations passes.
The White house launched the tariffs just after midnight EST Friday, as the trade dispute continues.
China said it was forced to retaliate, meaning an equal amount of U.S. goods would also face financial burdens.
Shares in Chinese markets took a beating in the run-up to the deadline, slipped further after passing, and pulled the Asian markets down.
As for the wider aspect, analysts expect this first round of tariffs won’t do major immediate damage; however, a drawn-out battle could disrupt the global economy.
In the countdown to midnight, Chinese State media slammed the White House, and accused the U.S. of acting like “a gang of hoodlums,”trying to “shake down” other countries — especially China.
That came after President Trump warned that in the end, the U.S. could target over $500 billion worth of Chinese goods — roughly the amount, in total, that the U.S. has imported from China last year.
Business sources in Washington and Beijing told reporters there had been little sign of last minute talks between the two sides to find any kind of solution to the trade dispute.
U.S. Customs and Border Protection will collect 25 percent duties on a wide range of Chinese items, including cars, computer disk drives, and parts of everything from valves to printers, but leaves cellphones, as well as footwear untouched.
China’s response to the list includes Soybeans — a massive moneymaker for U.S. farmers — Sorghum and Cotton.
Those items are all lifeline crops for Red States like Iowa and Texas, which helped vault President Trump into office during the 2016 Elections.