As if a 10 percent imposed tariff on Chinese imported goods wasn’t scary enough for the economy, President Donald Trump has now proposed bumping the tariff up to 25 percent on the $200 billion of Chinese imported goods.
Surprisingly, China is ready to retaliate back on these acclaims. A Chinese Foreign Ministry spokesperson said “U.S. pressure and blackmail won’t have an effect. If the United States takes further escalatory steps, China will inevitably take countermeasures and we will resolutely protect our legitimate rights.”
Trump may think he’s fighting for the rights of the U.S. economy, but investors and analysts are beginning to grow wary of the potential threat to the market, especially with high quarter 2 reports and the dollar index for the U.S. being on the rise.
The first group to be truthfully struck by these tariffs were farmers and the agriculture industry. Steel and aluminum are now more expensive, and the prices on soybeans have plummeted. If one industry begins to fall short, others could soon follow, causing the entire economy to stagnate.
While the tariffs would not be imposed until after “a period of public comment,” tensions are high in the big business and international worlds.