Not a month after announcing a hold on the trade war, President Donald Trump approved Thursday night about $50 billion in tariffs on Chinese exports. The Administration is making amendments to an early list of about 1,300 targeted goods.
Trump is also completing a list for a second wave of potential tariffs worth about $100 billion.
Why It’s Important
The taxes are seen to heighten the probability of a trade war with China, which compound frosty U.S. relations with Canada, Mexico and the European Union that could altogether limit global expansion.
The Dow Jones Industrial Average and S&P 500 fell in futures trading on the news. iShares FTSE/Xinhua China 25 Index (ETF) FXI saw a similar drop.
What’s Next
On Friday, Trump will release a list of the first class of products — primarily tech goods —to be hit with the tariffs. The duties will be implemented on July 6.
China vowed to hit the U.S. with tariffs of comparable value.
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