Trade War Talk Heats Up as Trump Officially Hits China With Tariffs
*By Alisha Haridasani*
Chinese officials accused the U.S. of plunging the countries with the world's two largest economies into a trade war Friday and said they'd retaliate immediately after President Donald Trump announced tariffs on Chinese exports.
The U.S. will levy a 25 percent tax on $50 billion of Chinese exports for “theft of intellectual property and technology and its other unfair trade practices,” the president said in a statement. “The United States will pursue additional tariffs if China engages in retaliatory measures.”
China, however, wasn’t deterred by the threat, promising to hit back in equal measure.
Major U.S. indices opened down on the news, with the Dow Jones tumbling nearly 300 points in early trade.
Trump decided to impose tariffs, which were initially announced in March, despite months of negotiations between the two countries. The White House has often flip flopped from tough rhetoric to declaring the trade spat [“on hold”](https://cheddar.com/videos/markets-rally-as-u-s-china-trade-war-cools). The administration even offered to save Chinese electronics company ZTE from the brink of collapse.
This round of tariffs comes on the heels of Trump’s decision to tax steel and aluminum imports coming in from the European Union, Canada, and Mexico. At the G7 summit in Canada last week, the president further antagonized U.S. allies by refusing to sign a joint statement on shared economic goals.
Wall Street drifted higher ahead of reports that will show how much a slowing economy is hurting what’s prevented a recession so far: solid spending by U.S. households.
John Honchariw, CEO and founder of Companion, joined Cheddar News to discuss the first innovative device solely designed to entertain, engage and have fun with your dog all day long. "What we aspire to as a company is to be a supplement to the relationship you have with your dog," he said.
Gusto, which provides cloud-based payroll benefits and HR management software, released its new graduates report with insights into the top industries and regions for this key demographic. Luke Pardue, economist at Gusto, joined Cheddar News to discuss the report's findings and dissect job prospects.
Sam Burns, chief strategist at Mill Street Research, joined Cheddar News to discuss a volatile trading week on Wall Street as the debt ceiling debate continues ahead of the June 1 deadline.
