Cameron Spencer/Getty; Win McNamee/Getty; Shayanne Gal/Business Insider
- President Donald Trump is expected to hit China with a tariff on another $200 billion worth of Chinese goods.
- The move will be a major escalation of the US-China trade war.
- China is expected to respond with more tariffs.
- Economists expect that the tariff will increase the cost of goods for US consumers and possibly slow the broader US economy.
President Donald Trump is expected to order the US Trade Representative to impose a tariff on $200 billion worth of Chinese goods, catapulting the US-China trade war to the next level.
During a White House meeting on Monday, Trump said an announcement on the tariffs would come after the stock market close. According to reports, the tariffs will apply a 10% duty to a slew of goods, ranging from food to furniture.
The latest tariffs, along with previous rounds on $50 billion of Chinese goods and metal imports, will mean over half of all Chinese goods coming into the US are subject to the duties.
"It will be a lot of money coming into the coffers of the United States of America," Trump said.
China's Ministry of Commerce has promised to respond to Trump's latest attack with tariffs on $60 billion worth of US goods. This means that between 85% and 95% of American imports coming into China will be subject to a tariff from the trade war.
The move willy also solidify Trump's commitment to to the trade war despite the Treasury Department's recent overtures to Beijing. China will reportedly decline further talks if Trump goes through with the tariffs on Monday.
The president also threatened to slap tariffs on another $267 billion worth of Chinese goods, which would mean all imports from China would be subject to duties.
In addition to being much larger than previous rounds of tariffs, the new set zeroes in on different targets. The first round of tariffs on $50 billion worth of Chinese goods focused almost exclusively on industrial goods, but Friday's tariffs also include a large amount of consumer goods.
Economists estimate the tariffs will prompt an increase in prices for both US businesses and consumers. That could slow spending on large investments and consumer purchases, potentially harming the broader economy.
Stocks also declined on Trump's pre-announcement statement with the Dow Jones industrial average falling 78 points, or 0.3%, as of 3:18 pm ET.
Here's a timeline of the US-China trade war so far:
- March 1: President Donald Trump announces tariffs on all imports of steel and aluminum, including metals from China.
- March 22: Trump announces plans to impose a 25% tariff on $50 billion worth of Chinese goods. China announces tariffs in retaliation to the steel and aluminum duties and promises a response to the latest US announcement.
- April 3: The US trade representative announces a list of Chinese goods subject to the tariffs. There is a mandatory 60-day comment period for industries to ask for exemptions from the tariffs.
- April 4: China rolls out a list of more than 100 US goods worth roughly $50 billion that are subject to retaliatory tariffs.
- May 21: After a meeting, the two countries announce the outline of a trade deal to avoid the tariffs.
- May 29: The White House announces that the tariffs on $50 billion of Chinese goods will move forward, with the final list of goods released June 15. The move appears to wreck the nascent trade deal.
- June 15: Trump rolls out the final list of goods subject to new tariffs. Chinese imports worth $34 billion would be subject to the new 25% tariff as of July 6, with another $16 billion worth of imports subject to the tariff at a later date. China retaliates with an equivalent set of tariffs.
- June 18: Trump threatens a 10% tariff on another $200 billion worth of Chinese goods.
- July 6: The first tranche of tariffs on $34 billion worth of Chinese goods takes effect; China responds in kind.
- July 10: The US releases an initial list of an additional $200 billion worth of Chinese goods that could be subject to a 10% tariff.
- August 1: Washington more than doubles the value of its tariff threats against Beijing, announcing plans to increase the size of proposed duties on $200 billion worth of Chinese goods to 25% from 10%.
- August 3: China says it will impose tariffs of various rates on another $60 billion worth of US goods if Trump moves forward with his latest threat.
- August 7: The US announces that the second tranche of tariffs, which will hit $16 billion worth of Chinese goods, will go into effect on August 23.
- August 23: The US imposes tariffs on another $16 billion worth of Chinese goods, and Beijing responds with tariffs on $16 billion worth of US goods.
- September 7: Trump says the $200 billion tranche of tariffs is coming "soon" and threatens to impose tariffs on another $267 billion worth of Chinese goods.