US Trade War Escalates as China Tariffs Soar
Trump vows 'huge' new China tariffs as markets nosedive
Washington - US President Donald Trump has vowed to impose "huge" new tariffs on Chinese goods, despite warnings from investors and economists that the move could trigger a global trade war and plunge the world into recession.
Trump's announcement on Friday sent global markets tumbling, with the Dow Jones Industrial Average falling by as much as 400 points, or 1.4 per cent, in early trading.
The President's latest salvo in the trade war with China came just hours after the US Treasury Department published a report urging the Trump administration to consider the economic risks of a trade war.
Trump's latest tariffs would target a wide range of Chinese goods, including electronics, textiles, and plastics. The President has been escalating the trade war with China since March, when he imposed tariffs on $34 billion worth of Chinese goods.
The move has already triggered retaliatory tariffs from China, and has raised concerns about the impact on global supply chains and economic growth.
The US Chamber of Commerce, a powerful business lobby, warned that the tariffs would "have a devastating impact on American businesses and workers".
The tariffs would also hurt American consumers, who would face higher prices for goods such as smartphones, laptops, and televisions, the Chamber said.
The International Monetary Fund (IMF) has also warned that a trade war could have a significant impact on global economic growth, and has urged countries to avoid protectionist measures.
Despite the warnings, Trump has remained defiant, insisting that the tariffs are necessary to protect American jobs and industries.
"Tariffs are working big time," Trump tweeted on Friday. "China is taking in tariffs, and they are taking in a lot. They are not happy about it, but they are taking it in."
The tariffs would be imposed on top of the existing tariffs on $34 billion worth of Chinese goods, which were imposed in March. The new tariffs would target a further $200 billion worth of Chinese goods, including electronics and textiles.
The move has sparked concerns about the impact on global supply chains, with companies such as Apple and Intel warning that the tariffs could disrupt their operations.
The tariffs would also hurt American consumers, who would face higher prices for goods such as smartphones, laptops, and televisions, the Chamber said.
The IMF has also warned that a trade war could have a significant impact on global economic growth, and has urged countries to avoid protectionist measures.
Despite the warnings, Trump has remained defiant, insisting that the tariffs are necessary to protect American jobs and industries.
"Tariffs are working big time," Trump tweeted on Friday. "China is taking in tariffs, and they are taking in a lot. They are not happy about it, but they are taking it in."