July 5, 2018 — President Donald Trump has boldly declared that trade wars are easy to win. He’s about to find out.
Barring a last-minute breakthrough, the Trump administration on Friday will start imposing tariffs on $34 billion in Chinese imports. And China will promptly strike back with tariffs on an equal amount of U.S. exports.
And just like that, a high-risk trade war between the world’s two biggest economies will begin — one that could quickly escalate.
“I see us running into a full collision course in a few days,” said Ashley Craig, a trade lawyer at Venable LLP. “It seems as if both sides are fairly dug in.”
Here’s a look at what’s happening this week and its likely impact.
WHAT IS THE U.S. DOING?
The White House last month announced plans to slap 25 percent tariffs on roughly 1,100 goods imported from China, worth $50 billion a year. It had originally proposed the tariffs in April, starting with 1,333 Chinese products. After receiving public feedback, the administration cut 515 imports from the blacklist and added 284 others.
Starting Friday, the U.S. will tax 818 Chinese products, worth $34 billion a year, from the original list. It won’t target the 284 additions, worth $16 billion, until it gathers further public comments.
Read the full story from the Associated Press at the Gloucester Daily Times