US - China Trade War: New Tariffs Imposed As Conflict Heats Up

As the trade war between the two superpowers lingers, China and the U.S. on Sunday followed through on their pledge to impose new tariffs on goods. The new tariffs took effect 12:01 a.m. ET.

As Reuters noted, China’s new round targeted U.S. crude oil with a 5% tariff, the first time in this ongoing trade conflict that fuel has been targeted. Around the same time, the U.S. issued a new 15% tariff on a variety of retail products, including Bluetooth headphones, smart speakers and footwear.

China retaliated by imposing more tariffs of their own on $75 billion U.S. goods, though they did not specify which product would be subject to these new tariffs.

The trade war means the prices of many retail goods will likely rise, which means a threat to consumer spending. The price of shoes, for example, will be subject to import taxes.

“We don’t want to be servants to the Chinese!” President Trump said in a tweet. “This is about American Freedom. Redirect the supply chain. There is no reason to buy everything from China!”

As part of his attempts to reduce Americans’ dependence on Chinese products, Trump urged companies to find new suppliers in different countries. China’s state media issued a response to Trump’s new tariffs and the ongoing trade war as a whole.

“The United States should learn how to behave like a responsible global power and stop acting as a ‘school bully,’” the Xinhua news agency said. “As the world’s only superpower, it needs to shoulder its due responsibility, and join other countries in making this world a better and more prosperous place. Only then can America become great again.”