President Donald Trump on Friday increased tariffs on $200 billion worth of Chinese goods, sparking a trade war, and seeing China, in turn, hit back Monday with tariffs on $60 billion worth of American goods.
The Dow Jones Industrial Average dropped sharply within seconds after opening Monday on the news that China had retaliated after Trump announced Friday that more than 5,700 goods made in China and sold in the United States will be affected by the increased tariffs.
According to U.S. Trade Representative Robert Lighthizer, the increase Trump ordered Friday may not be the last shot fired in the tariff war.
On Friday, Lighthizer said, “Earlier today, at the direction of the president, the United States increased the level of tariffs from 10 percent to 25 percent on approximately $200 billion worth of Chinese imports. The president also ordered us to begin the process of raising tariffs on essentially all remaining imports from China, which are valued at approximately $300 billion.”
While tariffs are placed on goods coming from China, Trump argued Monday in a series of tweets that it will not be American consumers, but Chinese businesses that will bear the brunt of the increase in tariffs from 10 percent last fall to 25 percent Friday.
"Their is no reason for the U.S. Consumer to pay the Tariffs, which take effect on China today,” Trump wrote in one of his posts on Twitter.
Trump went on to urge people to buy American-made products.
On Sunday, Larry Kudlow, the director of the National Economic Council, told Chris Wallace on “Fox News Sunday” that both the U.S. and China would be hurt by a trade war.
"In fact, both sides will pay in these things, and of course it depends," Kudlow said.
So which goods can consumers expect to see an increase in price? Here is a partial list of those Chinese items subjected to the increase tariff.
Note: The list was released by Lighthizer’s office in September when Trump ordered a 10 percent tariff on goods such as industrial equipment. This round includes more consumer products such as food, home electronic equipment and other consumer items like shaving cream, rubber gloves, furniture and baseball gloves.
Here are some of the items in some of the items on the U.S. Trade Representative’s list (see the full list at bottom):
Beverages: Beer, wine, fruit juices and mineral water.
Bread and pasta: Various uncooked pasta, various bread, pastries, cakes and biscuits.
Cereals: Various types of wheat; oats, barley, rice, corn and more.
Fish and seafood: Live fish, including ornamental fish, trout, eels, tuna and carp, and frozen fish and shellfish.
Dairy and eggs: Butter, whey products and eggs.
Electronics: Televisions, DVRs and cameras.
Fruit and nuts: Almonds, cashews, chestnuts, clementines, coconuts, cashews, apples, pineapples, dates, guavas, figs, mandarin oranges, peaches, berries, hazelnuts, oranges, pecans, macadamia nuts, pears and quinces.
Meat products: Pork, beef intestines, rabbit meat and frog legs.
Vegetables: Beans, beets, Brussels sprouts, cabbage, carrots, cauliflower, broccoli, celery, cucumbers, garlic, lentils, okra, onions, peas, peppers, mushrooms, potatoes, radishes, spinach, squash, sweet corn, sweet potatoes, tomatoes and turnips.
Personal products: Shampoo, shaving cream and tanning oil.
Sugars and candies: Cane sugar and certain candies that do not contain cocoa.
Here is the full list of items with tariff’s attached: