News

China Retaliates Against Trump Tariffs With $60 Billion In New Duties

China announced on Monday that it will raise tariffs on $60 billion in U.S. goods at the start of next month, which represents a 5 to 25 percent tariff. This is an addition to the duties that are already in place, marking the latest tactic in the trade conflict between the two economic giants.

The announcement comes right after President Donald Trump warned China against retaliating on the hiked tariffs that the U.S. put on $200 billion of Chinese goods last week. Trump publicly warned Beijing to not retaliate, stating it “will only get worse” for China if it takes action.


Beijing has said that it will take “necessary countermeasures” in response to the new tariffs, but had not made a move until Monday’s announcement.

The increased tension between the two countries was a result of Beijing reneging on a number of commitments it had agreed to, U.S. officials said. There have been many high-level negotiations put in place to break the impasse, but no concrete resolutions have been achieved.

Subscribe to our free weekly newsletter!

A week of political news in your in-box.
We find the news you need to know, so you don't have to.

Trump is unwilling to back down from the conflict because he believes the duties that are placed on Chinese goods means that China will pay more money directly to the U.S. Treasury.

In an interview on Sunday, White House economic adviser Larry Kudlow disagreed with this view and acknowledged that American businesses and consumers will suffer from the increase in tariffs.

This assessment is in line with what most mainstream economists believe would happen in the case of increased tariffs. These tariffs can be considered taxes that are paid by importers, namely U.S. companies, that bring in products from China. These costs are usually passed on to consumers in the form of higher prices, which may drive down demand for Chinese imports.

SLIDESHOW: TOP DEMOCRATS RUNNING FOR PRESIDENT IN 2020

Trump suggested a solution to the tariff situation: U.S. companies could simply avoid them by purchasing their goods from countries that are not subject to the U.S. tariffs.


But rerouting supply chains to avoid purchasing goods from China is costly and time consuming, which could also force companies to raise prices to consumers. Furthermore, companies that import from China might do so because the goods are unavailable elsewhere or would be far more expensive otherwise.

Alessa Erawan

Recent Posts

Democrats Attack Green Party Nominee Jill Stein In New Ad

A new ad about Green Party candidate Jill Stein has been released by Vice President Kamala Harris'…

9 hours ago

Jennifer Lopez Says Trump ‘Offended Every Latino In The Country’ With MSG Joke At Harris Rally

https://youtu.be/inbJpo6D4BQ Jennifer Lopez, campaigning with Kamala Harris on Oct. 31 in Nevada, said Donald Trump’s…

9 hours ago

Trump National Security Adviser Michael Flynn Says ‘Gates Of Hell’ Will Be Opened On Opponents If Trump Is Reelected

Former National Security Adviser Michael Flynn declared that the "gates of hell" would be unleashed if former…

2 days ago

VIDEO: Kamala Harris Hugs First Person In Line For Her Ellipse Rally, Chats With Her Mom

https://youtu.be/JQCdk-71tG0 Democratic presidential nominee Kamala Harris met with the woman who was the first in…

2 days ago

VIDEO: Harris Vows To Put ‘Country Above Party’ In Front Of 75,000 People At The Ellipse

https://youtu.be/xc72fdqkaVc Vice President Kamala Harris vowed to put “country above party and above self” as…

2 days ago

Trump-Friendly Judge Aileen Cannon In The Running For Attorney General If Former President Wins Second Term

U.S. District Judge Aileen Cannon has reportedly been placed on a list of potential attorney general candidates…

3 days ago