Trade war with China: What you need to know

Trade war with China: What you need to know

Trade war with China: What you need to know

"If dramatic changes in its trade policy regime aren't made, China's approach to seizing advantage in the marketplace will put U.S. businesses at a competitive disadvantage, threatening the long-term prosperity, economic growth and job creation here at home", he said. The threatened tariffs come at a time when American companies are planning to invest billions in new petrochemicals and plastics facilities.

Trump said in a statement the further tariffs were being considered "in light of China's unfair retaliation" against earlier USA trade actions that included $50 billion of tariffs on Chinese goods. This is in addition to the proposed 25 per cent import tariffs worth United States dollars 50 billion on some 1,300 Chinese products being imported into the US.

China's list names cars, aircraft, soybeans, corn, sorghum, whiskey, beef, tobacco, cotton and plastic products, according to a CNBC translation.

US stock index futures fell in reaction to Trump's latest statement.

On Wednesday, China unveiled a list of 106 US goods - from soybeans and whiskey to frozen beef and aircraft - targeted for tariffs, in a swift retaliatory move only hours after the Trump administration proposed duties on some 1,300 Chinese industrial, technology, transport and medical products.

US citizens will pay plenty for it.

The U.S.is targeting China for unfair trade practices and the trade deficit. China is already too strong, its economy too big.

Put simply, a tariff is a tax typically imposed on imported goods. The U.S.is the second-largest supplier of soybeans to China, after Brazil, and soybean farmers past year sent $14 billion worth of the crop to China. The central bank official also noted that the USA labor market appeared close to full employment, which could spell an inflationary period that would elevate price levels. "This is just a proposed idea", Trump economic adviser Larry Kudlow told reporters Friday morning.

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