Trump’s latest China tariffs: What we know so far

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President Donald Trump signaled Thursday that he would hike tariffs on Chinese imports next month after recent talks failed to deliver a trade deal, escalating his trade war with Beijing and taking more direct aim at consumer products.

The move increases the risk of recession next year as well as the chances of another Federal Reserve cut in interest rates in September, economists say.

“It’s adding further stress to an already stressed trade environment,” says Gregory Daco, chief U.S. economist of Oxford Economics. “It adds up to a very significant slowdown in economic growth.”

This latest threat is to introduce a 10% tariff on $300 billion in Chinese imports not covered by earlier tariffs.

An existing 25% tariff on $250 billion in Chinese imports – as well as duties on imported appliances, steel and aluminum – are already set to reduce economic growth by three-tenths of a percentage point next year, Daco says. The proposed tariff on $300 billion in Chinese shipments would shave off another tenth, cutting growth by nearly half a percentage point to 1.7%, he says.

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