President Trump boasted of a improving economy in a speech to small-business owners Tuesday. But those gains could be jeopardized by his escalating trade battles.
In the latest move in a nascent trade war, the president announced he wanted to impose a 10 percent tariff on more Chinese products, in addition to the $50 billion announced Friday.
The Trump administration says it will impose a 25 percent tariff on $50 billion of Chinese goods with "industrially significant technology." A list of products will be released in the next few weeks.
The U.S. has been pushing China to lower its high 25 percent tariff on imported cars, but most countries zealously protect their domestic auto markets — including the United States itself.
When a Chinese wind turbine maker stole vital trade secrets from American Superconductor, the damage was enormous. The theft cost the firm hundreds of millions of dollars and resulted in mass layoffs.
China's retaliatory tariffs would hit farmers, who rely on exports to keep their business models going, harder than any other group, especially those raising hogs, nuts and fruit.
Agricultural products such as wine, nuts and frozen pork are on China's tariff list of U.S. goods, which comes in retaliation to a similar move by the Trump administration.
After President Trump unleashes new tariffs, China has a number of key U.S. imports — from soybeans to airplanes and iPhones — that it can choose to strike back against.