Trump boosting U.S. tariffs on $550 billion in Chinese imports

By Aimee Picchi

/ MoneyWatch

Trump hikes tariffs on China imports

President Trump tweeted on Friday that his administration will boost tariffs on $550 billion in Chinese imports in retaliation for China's decision on Friday to hike trade levies on $75 billion in U.S. products. The move deepens a trade war that many fear could tip the U.S. and global economies into recession.

The president said U.S. tariffs on $250 billion in Chinese imports will increase from 25% to 30% on October 1. An additional $300 billion in Chinese goods will be taxed at 15%, instead of 10%, starting on September 1. The stepped-up tariffs means the U.S. has hiked taxes on virtually all goods imported from China.

"China should not have put new Tariffs on 75 BILLION DOLLARS of United States product (politically motivated!)," Mr. Trump tweeted on Friday afternoon.

For many years China (and many other countries) has been taking advantage of the United States on Trade, Intellectual Property Theft, and much more. Our Country has been losing HUNDREDS OF BILLIONS OF DOLLARS a year to China, with no end in sight….

— Donald J. Trump (@realDonaldTrump) August 23, 2019

The Office of the U.S. Trade Representative said in a statement that the U.S. tariffs on $300 billion in goods from China will take effect at the higher rate in two phases as previously scheduled — one on September 1 and one on December 15.

Trending News

The tariff hikes come after the president earlier on Friday had signaled he planned to respond to China's own trade escalation. "I will be responding to China's Tariffs this afternoon," he wrote on Twitter. "This is a GREAT opportunity for the United States."

Mr. Trump also said he was "ordering" U.S. businesses to "immediately start looking for an alternative to China," including bringing their manufacturing back to the U.S. However, it wasn't clear how he planned to force companies to do so, given that many rely on China for manufacturing that's far more economical than is possible in the U.S.

Late Friday, Mr. Trump defended his decision to order U.S. companies to "start looking for alternatives" to China, citing the Emergency Economic Powers Act of 1977. The law gives the president authority to regulate commerce after an "unusual and extraordinary threat" is declared.

Federal Reserve Chairman Jerome Powell and other policymakers warn that a prolonged trade war between the world's two largest economies could sap global growth. Markets sagged on Friday after China's move to raise tariffs and Mr. Trump's vow to retaliate. The Dow closed down more than 600 points, or 2.3%, the Nasdaq plunged 3% and the broader S&P 500 lost 2.6%.

Markets drop as China announces tariff hike on U.S. products

Businesses also expressed concern, with a trade group that represents large retailers criticizing the White House.

"It's impossible for businesses to plan for the future in this type of environment," David French, vice president of government relations for the National Retail Federation, said in a statement. "The administration's approach clearly isn't working, and the answer isn't more taxes on American businesses and consumers."

Rick Helfenbein, CEO of the American Apparel & Footwear Association, complained that the White House's approach amounts to a "1930s trade strategy," saying that it "will be a disaster for American consumers, American businesses and the American economy."

No end in sight

For Mr. Trump, a key concern is whether the escalating conflict could lead to a further reduction in Chinese purchases of U.S. crops, a potentially serious blow for American farmers. Zippy Duvall, head of the American Farm Bureau, said in a statement that China's increased tariffs on U.S. imports signal "more trouble for American agriculture," while expressing concern that any retaliation "adds to the difficulties farm and ranch families are facing."

White House trade official Peter Navarro downplays consumer impact of Chinese tariffs

More broadly, economists say that sharply higher tariffs on Chinese goods could raise prices for consumers on everything from phones and video consoles to apparel and shoes. Meanwhile, the latest escalation in trade tensions comes amid signs that the U.S. economy is slowing down, including declining corporate profits and a dip in job-creation.

Paul Ashworth, chief U.S. economist with Capital Economics, thinks the direct hit to the U.S. economy from the volley of tariffs is likely to be modest. Tacking on an additional 5% in duties on $550 billion in Chinese imports amounts to a roughly $27 billion tax spread out among American consumers. The bigger threat, according to Ashworth — uncertainty over when — and if — the conflict might end.

— Rachel Layne contributed to this report

First published on August 23, 2019 / 5:35 PM

© 2019 CBS Interactive Inc.. All Rights Reserved.

Unpiloted Soyuz spacecraft aborts space station docking

Russian flight controllers hope to make a second docking attempt after troubleshooting

37M ago 082419-abort2.jpg 0824-satmo-thedish.jpg

The Dish: Chef Anya Fernald shares her signature recipes

Including sausage, chimichurri, and roasted baby carrots

1H ago 0824-satmo-thedish.jpg FRANCE-G7-SUMMIT

Trump arrives for G-7 summit amid trade war with China

Mr. Trump may get an icy reception when he meets with world leaders

1H ago FRANCE-G7-SUMMIT NKOREA-NUCLEAR-MISSILE

North Korea fires projectiles off east coast​, South Korea says

​South Korea's Joint Chiefs of Staff said the launches were made from the North's northeastern Hamgyong province

14H ago NKOREA-NUCLEAR-MISSILE Hong Kong Protests

Hong Kong protesters form human chains across city

Protest was inspired by The Baltic Way, where 2 million people held hands across Latvia, Lithuania and Estonia in 1989 to push back against the Soviet Union

2H ago Hong Kong Protests Trump

Trump hiking U.S. tariffs on $550 billion in Chinese imports

Conflict takes a dangerous new turn as the Trump administration and China exchange blows over trade

10M ago Trump 082419-abort2.jpg

Unpiloted Soyuz spacecraft aborts space station docking

Russian flight controllers hope to make a second docking attempt after troubleshooting

37M ago 082419-abort2.jpg 0824-satmo-thedish.jpg

The Dish: Chef Anya Fernald shares her signature recipes

Including sausage, chimichurri, and roasted baby carrots

1H ago 0824-satmo-thedish.jpg FRANCE-G7-SUMMIT

Trump arrives for G-7 summit amid trade war with China

Mr. Trump may get an icy reception when he meets with world leaders

1H ago FRANCE-G7-SUMMIT Jussie Smollett

Former U.S. attorney named special prosecutor in Smollett case

Dan Webb has been tasked with re-examining the handling of the Smollett case, marking the sixth time he's been tapped as a special prosecutor

1H ago Jussie Smollett Trump

Trump hiking U.S. tariffs on $550 billion in Chinese imports

Conflict takes a dangerous new turn as the Trump administration and China exchange blows over trade

10M ago Trump FRANCE-G7-SUMMIT

Trump arrives for G-7 summit amid trade war with China

Mr. Trump may get an icy reception when he meets with world leaders

1H ago FRANCE-G7-SUMMIT Mexico Immigration

Courts fast-tracking hearings for "Remain in Mexico" policy

Under the policy, the U.S. government has returned tens of thousands of asylum-seeking migrants to Mexico — where the vast majority are unable to find lawyers

14H ago Mexico Immigration Supreme Court Justice Ruth Bader Ginsburg Attends Discussion At Georgetown Law

Ruth Bader Ginsburg completes radiation therapy

The radiation therapy was administered to treat a tumor on her pancreas

14H ago Supreme Court Justice Ruth Bader Ginsburg Attends Discussion At Georgetown Law UPDATED trail-markers-graphic-presidential-4.jpg

2020 Daily Trail Markers: Dems court powerful Nevada union

Joe Biden's campaign is accusing the Trump campaign of trying to poach its donors. Pete Buttigieg talked with CBS News about his mental health plan

15H ago UPDATED trail-markers-graphic-presidential-4.jpg D23 Expo 2019

Disney is bringing back Hilary Duff for a "Lizzie McGuire" reboot

"This is what dreams are made of"

1M ago D23 Expo 2019 woodstock-cover-burk-uzzle-color-promo.jpg

Woodstock at 50, in the words, and music, of those who were there

A half-century after a mass of humanity converged on a farm in Bethel, N.Y. for three days of peace and music, musicians and concert-goers recall a unique moment for their generation

Aug 4 woodstock-cover-burk-uzzle-color-promo.jpg 0824-satsessions-gottagettoknowya-1919156-640x360.jpg

Seratones performs "Gotta Get To Know Ya"

Seratones, a group of rockers from Shreveport, Louisiana, got together in 2013 and created a rock-and-roll sound influenced by soul and punk. Three years later, they released their first album – and they had their first TV debut on CBS. On Friday, the group released "Power," their second studio collection, and began a 35-city international tour. Seratones performs three of its hit songs.

updated 13M ago 02:37 0824-satsessions-gottagettoknowya-1919156-640x360.jpg 0824-satsessions-power-1919171-640x360.jpg

Seratones performs "Power"

Seratones, a group of rockers from Shreveport, Louisiana, got together in 2013 and created a rock-and-roll sound influenced by soul and punk. Three years later, they released their first album – and they had their first TV debut on CBS. On Friday, the group released "Power," their second studio collection, and began a 35-city international tour. Seratones performs three of its hit songs.

updated 13M ago 03:58 0824-satsessions-power-1919171-640x360.jpg 0824-satmo-fallmovies-gleiberman-1919140-640x360.jpg

The fall movies worth watching

Owen Gleiberman, chief film critic for Variety magazine, joins “CBS This Morning Saturday” to discuss the movies worth watching this fall. That includes "IT Chapter Two," "Downton Abbey," and "Ad Astra."

updated 42M ago 05:22 0824-satmo-fallmovies-gleiberman-1919140-640x360.jpg 082419-abort2.jpg

Unpiloted Soyuz spacecraft aborts space station docking

Russian flight controllers hope to make a second docking attempt after troubleshooting

37M ago 082419-abort2.jpg Hong Kong protests

YouTube shuts over 200 channels with Hong Kong disinformation

The decision follows the suspension​ of hundreds of thousands of Twitter and Facebook accounts tied to the Chinese government

Aug 23 Hong Kong protests 0511-en-werner-robocalls-1314036-640x360.jpg

Phone carriers will block some robocalls for free

AT&T, Sprint, T-Mobile and Verizon will start offering blocking software and move to halt fake caller ID numbers

Aug 22 0511-en-werner-robocalls-1314036-640x360.jpg FRANCE-US-INTERNET-SOCIAL-NETWORK-INSTAGRAM

Instagram says there's "no truth" to new hoax post, so don't share it

The fake notice has already fooled many of your friends and many celebrities

Aug 22 FRANCE-US-INTERNET-SOCIAL-NETWORK-INSTAGRAM cbsn-fusion-facebook-contractors-listened-transcribed-audio-messages-thumbnail-1911912-640x360.jpg

Facebook will let users see how company tracks them

Users will be able to disconnect their account from data Facebook gathers elsewhere on the web—after a wait period

Aug 21 cbsn-fusion-facebook-contractors-listened-transcribed-audio-messages-thumbnail-1911912-640x360.jpg Fire in an area of the Amazon rainforest near Humaita, Brazil

Brazil officials call Amazon fire outrage "sensationalist"

Brazil's President Jair Bolsonaro encouraged development in the Amazon rainforest. Now he's calling global backlash "sensationalist"

20H ago Fire in an area of the Amazon rainforest near Humaita, Brazil Amazon jungle fire

What you can do to help the burning Amazon rainforest

The Amazon is the largest rainforest in the world and vital to combating climate change — and it's on fire with no end in sight

21H ago Amazon jungle fire triceratops-at-american-museum-of-natural-history-judy-lehmberg.jpg

Nature up close: A trip to the American Museum of Natural History

Visiting New York City's Mecca for any natural history fanatic

22H ago triceratops-at-american-museum-of-natural-history-judy-lehmberg.jpg 68548885-2433472356719179-270933847066017792-n.jpg

New York woman catches fish with 2 mouths

The catch was made in Lake Champlain, which is rumored to have its own Loch Ness-like sea monster

Aug 22 68548885-2433472356719179-270933847066017792-n.jpg phillips-shark-tagging-082219-newspath-frame-2591.jpg

Sharks gather for annual underwater mating dance

Every year, sharks gather for their annual underwater mating dance and scientists are there to catch them

Aug 22 phillips-shark-tagging-082219-newspath-frame-2591.jpg Supreme Court Justice Ruth Bader Ginsburg Attends Discussion At Georgetown Law

Ruth Bader Ginsburg completes radiation therapy

The radiation therapy was administered to treat a tumor on her pancreas

14H ago Supreme Court Justice Ruth Bader Ginsburg Attends Discussion At Georgetown Law djqftu8tqfwwr02o5rt21g.jpg

Front lawn becomes a stage for house-ridden boy

Quinn Waters lives in a world all his own, but he's not lonely — not anymore

15H ago djqftu8tqfwwr02o5rt21g.jpg intro-slide.jpg

World's most polluted cities

Air pollution can cause serious health problems for people who are exposed to it, even for just a few minutes

15H ago 51 photos intro-slide.jpg Disney California Adventure Park

Warning of measles exposure at Disneyland parks

According to the Orange County Health Care Agency, the infectious teen was in the area from August 11 to 15

16H ago Disney California Adventure Park Vaping an e-cigarette

Patient's death may be first vaping-related fatality in U.S.

At least 22 people, have developed some type of respiratory illness after vaping or using e-cigarettes

18H ago Vaping an e-cigarette Trump

Trump hiking U.S. tariffs on $550 billion in Chinese imports

Conflict takes a dangerous new turn as the Trump administration and China exchange blows over trade

10M ago Trump US-CHINA-TRADE-POLITICS-TARIFFS

Stocks crumble as U.S.-China trade war heats up

Investors on edge as China hikes tariffs on U.S. goods and President Trump vows to hit back

21H ago US-CHINA-TRADE-POLITICS-TARIFFS President Donald Trump Meets With Romanian President Klaus Iohannis At The White House

Trump orders U.S. companies to seek "alternatives" to China

Responding to China tariffs, the president leaned on American companies to make "your products in the USA"

18H ago President Donald Trump Meets With Romanian President Klaus Iohannis At The White House Close up of one hundred Dollar and 100 Yaun banknotes with focus on portraits of Benjamin Franklin and Mao Tse-tung/USA vs China trade war concept

China hikes tariffs on U.S. goods in latest trade war salvo

Tit-for-tat levies are the latest salvo in the escalating trade war between the world's two biggest economies

19H ago Close up of one hundred Dollar and 100 Yaun banknotes with focus on portraits of Benjamin Franklin and Mao Tse-tung/USA vs China trade war concept A police cordon is seen after a mass shooting at a Walmart in El Paso

Walmart and other retailers face a new front on gun sales: Lawsuits

Nation's biggest retailer has settled with at least two families of people killed in a mass shooting

22H ago A police cordon is seen after a mass shooting at a Walmart in El Paso Jussie Smollett

Former U.S. attorney named special prosecutor in Smollett case

Dan Webb has been tasked with re-examining the handling of the Smollett case, marking the sixth time he's been tapped as a special prosecutor

1H ago Jussie Smollett ap6608010465.jpg

America's deadliest mass shootings

These are the deadliest mass shootings in American history

Aug 5 40 photos ap6608010465.jpg Michael Drejka speaks to CBS affiliate WTSP-TV at Florida's Pinellas County Jail on Aug. 31, 2018.

Jury finds man guilty of manslaughter in "stand your ground" case

Michael Drejka is scheduled to be sentenced on October 10 and is being held without bond

11H ago Michael Drejka speaks to CBS affiliate WTSP-TV at Florida's Pinellas County Jail on Aug. 31, 2018. 0823-en-anguillamurder-barnett-1918882-640x360.jpg

New details emerge in Anguilla manslaughter case

A resort worker is providing new details in the case of a Connecticut man accused of manslaughter in the Caribbean. Errol Barnett reports.

14H ago 02:03 0823-en-anguillamurder-barnett-1918882-640x360.jpg 0823-en-houstonofficer-1918865-640x360.jpg

Former Houston police officer charged with murder

A former police officer is charged with murder in connection with a botched drug raid. Prosecutors say ex-cop Gerald Goines lied to obtain a search warrant on a home he said belonged to heroin dealers. Major Garrett reports.

11H ago 00:31 0823-en-houstonofficer-1918865-640x360.jpg 082419-abort2.jpg

Unpiloted Soyuz spacecraft aborts space station docking

Russian flight controllers hope to make a second docking attempt after troubleshooting

37M ago 082419-abort2.jpg image1.jpg

Rocket launches GPS satellite into orbit for Air Force

The new satellite is the second in a new generation of advanced navigation beacons

Aug 22 image1.jpg 082119-skybot.jpg

Humanoid robot "commands" Russian rocket test flight

The humanoid robot is known as Skybot F-850 and as FEDOR; the test flight was needed to clear an upgraded Soyuz booster to launch human crews to the space station

Aug 22 082119-skybot.jpg ripitup.jpg

Black hole possibly swallowed neutron star, causing ripples in space

The cosmic collision could be the first example of a black hole colliding with a neutron star — possibly offering new insights into the expansion of the universe

Aug 21 ripitup.jpg iss-sideview.jpg

Spacewalk installs key upgrade to station

The new port will allow two U.S. commercial crew ships to dock at the space station at the same time

Aug 21 iss-sideview.jpg intro-slide.jpg

World's most polluted cities

Air pollution can cause serious health problems for people who are exposed to it, even for just a few minutes

15H ago 51 photos intro-slide.jpg Fire in an area of the Amazon rainforest near Humaita, Brazil

Pictures from the Amazon rainforest fires

A record number of fires have devastated the Amazon rainforest in Brazil and neighboring countries

Aug 22 28 photos Fire in an area of the Amazon rainforest near Humaita, Brazil corbett-1.jpg

Jason Corbett murder: A look at the evidence

In August 2015, former FBI agent Tom Martens and his daughter Molly Corbett admitted killing her Irish-born husband Jason Corbett, insisting they beat him in self-defense with a brick paver and a baseball bat because Jason was choking Molly and threatening to kill her

Aug 17 11 photos corbett-1.jpg Ashley Ellerin, left, Tricia Pacaccio, center, and Maria Bruno.

Michael Gargiulo case: Stabbing deaths of three women linked to suspected serial killer

Investigators link murders of Tricia Pacaccio, Ashley Ellerin and Maria Bruno to same suspect: Michael Gargiulo

Aug 15 13 photos Ashley Ellerin, left, Tricia Pacaccio, center, and Maria Bruno.  1slide-the-worst-movies-of-2019-ranked.jpg

The worst movies of 2019

The worst films of the year star big name actors, including Keanu Reeves, Anne Hathaway, and Chris Hemsworth.

Aug 9 51 photos 1slide-the-worst-movies-of-2019-ranked.jpg 0824-satsessions-overyou-1919163-640x360.jpg

Popular

Seratones performs "Over You"

Seratones, a group of rockers from Shreveport, Louisiana, got together in 2013 and created a rock-and-roll sound influenced by soul and punk. Three years later, they released their first album – and they had their first TV debut on CBS. On Friday, the group released "Power," their second studio collection, and began a 35-city international tour. Seratones performs three of its hit songs.

updated 13M ago 03:31 0824-satsessions-overyou-1919163-640x360.jpg 0824-satsessions-gottagettoknowya-1919156-640x360.jpg

Seratones performs "Gotta Get To Know Ya"

Seratones, a group of rockers from Shreveport, Louisiana, got together in 2013 and created a rock-and-roll sound influenced by soul and punk. Three years later, they released their first album – and they had their first TV debut on CBS. On Friday, the group released "Power," their second studio collection, and began a 35-city international tour. Seratones performs three of its hit songs.

updated 13M ago 02:37 0824-satsessions-gottagettoknowya-1919156-640x360.jpg 0824-satsessions-power-1919171-640x360.jpg

Seratones performs "Power"

Seratones, a group of rockers from Shreveport, Louisiana, got together in 2013 and created a rock-and-roll sound influenced by soul and punk. Three years later, they released their first album – and they had their first TV debut on CBS. On Friday, the group released "Power," their second studio collection, and began a 35-city international tour. Seratones performs three of its hit songs.

updated 13M ago 03:58 0824-satsessions-power-1919171-640x360.jpg master-farming-climate-1920x1080notyt-1898130-640x360.jpg

A climate reckoning in the heartland

A historic flood in March 2019 left much of America's heartland under water. Grain farmers already struggling to bounce back from the Chinese trade war must now grapple with the realities of climate change that threaten to change the future of farming forever. Now, some farmers are implementing practices that could potentially reverse the effects of climate change – and provide a bigger profit. In this CBSN Originals documentary, Adam Yamaguchi travels to Nebraska, where he meets two farmers on different paths, both determined to pass their legacies on to the next generation.

Jul 26 23:07 master-farming-climate-1920x1080notyt-1898130-640x360.jpg 0824-satmo-thedish-1919142-640x360.jpg

The Dish: Chef Anya Fernald

From a ranch near California's Mount Shasta straight to dinner tables all over the state, Chef Anya Fernald has created a model for meat production that's shaking up the industry. Fernald joined "CBS This Morning Saturday" to share a few of her signature recipes.

updated 23M ago 05:43 0824-satmo-thedish-1919142-640x360.jpg

LEAVE A REPLY

Please enter your comment!
Please enter your name here