That didn’t take long.
Hours after China retaliated with tariffs on $75 billion worth of goods, President Trump retaliated, sending markets screaming lower.
All after President Trump tweeted:
“Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA. I will be responding to China’s Tariffs this afternoon. This is a GREAT opportunity for the United States. Also, I am ordering all carriers, including FedEx, Amazon, UPS and the Post Office, to SEARCH FOR & REFUSE all deliveries of Fentanyl…”
“We don’t need China and, frankly, would be far better off without them.”
However, Trump didn’t stop there. In fact, he just noted that the 25% tariffs on $250 billion of Chinese imports would rise to 30% by October 1, 2019. Separately, the remaining $300 billion of imports will be tariffed at 15% instead of 10% by September 1, 2019.
“Sadly, past Administrations have allowed China to get so far ahead of Fair and Balanced Trade that it has become a great burden to the American Taxpayer,” he tweeted Friday. “As President, I can no longer allow this to happen!”
Tariffs Will Make it Tougher on U.S. Business
Trade associations are slamming the latest Trump tariffs, saying the escalation is benefiting no one. “China and the United States continue to needlessly escalate this trade war — with U.S. consumers as collateral damage,” said the Information Technology Industry Council, as quoted by The Washington Examiner. “Both nations need to seriously consider the ramifications of their actions on global economies and markets and stop creating an environment of extreme uncertainty.”
Even the National Retail Federation has said, “It’s impossible for businesses to plan for the future in this type of environment. The administration’s approach clearly isn’t working, and the answer isn’t more taxes on American businesses and consumers. Where does this end?”
Unfortunately, things may only get worse before we see any signs of improvement.