Donald Trump has imposed a further $200 billion worth of import tariffs of Chinese goods arriving in the US.
The US President’s new round of tariffs will not only affect businesses but hit thousands of consumer goods and increase costs.
“For months, we have urged China to change these unfair practices, and give fair and reciprocal treatment to American companies,” said Trump in a statement.
“We have been very clear about the type of changes that need to be made, and we have given China every opportunity to treat us more fairly. But, so far, China has been unwilling to change its practices.”
The tariffs will increase the costs of many consumer items including electronics, food, houseware items and luggage.
The latest round, which Trump has blamed on “unfair policies and practices”, will affect half of all Chinese goods coming into the US.
Investors were expecting Trump’s latest move and therefore the blow to the market was not as big as it could have been.
Chang Wei Liang of Mizuho Bank said: “Given that markets have been bracing for this tariff announcement, we expect a muted rather than dramatic sell-off in Asian equities and currencies today.”
Earlier on Tuesday, Trump tweeted a warning to foreign countries of higher tariffs if they failed to agree on “fair” trade agreements.
“Tariffs have put the US in a very strong bargaining position, with Billions of Dollars, and Jobs, flowing into our Country – and yet cost increases have thus far been almost unnoticeable. If countries will not make fair deals with us, they will be ‘Tariffed!’” he tweeted.
The US President also took to Twitter to describe the benefits the latest round of tariffs would have on the US economy.
“Our Steel Industry is the talk of the World. It has been given new life, and is thriving. Billions of Dollars is being spent on new plants all around the country!” he wrote.
