US-China Tariffs: What’s Behind Them, Who Stands to Be Hurt?
Barring a last-minute breakthrough, the Trump administration on Friday will start imposing tariffs on $34 billion in Chinese imports. And
And just like that, a high-risk trade war between the world’s two biggest economies will begin — one that could quickly escalate.
“I see us running into a full collision course in a few days,” said Ashley Craig, a trade lawyer at
Here’s a look at what’s happening this week and its likely impact.
WHAT IS THE U.S. DOING?
The White House last month announced plans to slap 25 percent tariffs on roughly 1,100 goods imported from
Starting Friday, the
HOW IS CHINA RESPONDING?
In the meantime, Trump has told his
The stakes could rise further yet: Trump has threatened tariffs on still another $200 billion in Chinese products if
WHAT’S BEHIND THE U.S.-CHINA RIFT?
The Trump administration has accused
Foreign business groups argue that “Made in
In May, the White House had said it would announce curbs on Chinese investment in
WHAT HAPPENED TO THE INVESTMENT RESTRICTIONS?The administration settled last week on a less draconian plan: It would back an effort in Congress to strengthen reviews of foreign investment under the existing Committee on Foreign Investment in
The House has approved a bill to strengthen the CFIUS law, and the bill will likely be considered by a House-Senate conference committee for a Senate-approved defense measure.
WHAT’S THE LIKELY IMPACT FROM A U.S.-CHINA TRADE WAR?
The initial fusillade of tariffs will likely do little damage to
Economists at
Many individual businesses could soon endure hardship, too. Consider American soybean farmers, who send about 60 percent of their exports to
What’s more, the
ISN’T THE U.S. ALSO SPARRING WITH OTHER TRADING PARTNERS?
Yes. Trump is battling in just about every direction. He has slapped tariffs on imported steel and aluminum — action that has drawn retaliatory tariffs from
And he is pressuring
By brawling with America’s friends, critics say, Trump has squandered an opportunity to build a united front against
IS THERE ANY REASON TO EXPECT A RESOLUTION?
Maybe. For a time, it looked as though peace might be at hand. In May, Treasury Secretary Steven Mnuchin declared the trade war “on hold.” The Trump administration suspended its tariffs after
The top White House economic adviser, Larry Kudlow, has said the two countries are “in communication” — although there’s been no word of any formal negotiations. Trump himself told Fox News Channel’s “Sunday Morning Futures With Maria Bartiromo” that “
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