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China hits back at US and will raise tariffs on American goods from 84% to 125%

China hits back at US and will raise tariffs on American goods from 84% to 125%

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China hits back at US and will raise tariffs on American goods from 84% to 125%

BEIJING — China announced Friday that it will raise tariffs on U.S. goods from 84% to 125% — the latest salvo in an escalating trade war between the world's two largest economies that has rattled markets and raised fears of a global slowdown.

Much has been made about President Donald Trump's decision to put a 90-day freeze on tariffs on 75 countries that have agreed to come to the bargaining table. At the same time, he has increased tariffs to 145% on Communist China. While Trump's move on tariffs has its detractors, some argue major benefits will result.

Bauer, Gary (American Values) Bauer
"I believe this is the beginning of an American renaissance in manufacturing," says Gary Bauer, chairman of Campaign for Working Families. "You're going to see more and more factories being built in the United States in the years to come."

But Bauer tells AFN that Beijing will continue to be the dominant foreign policy issue that Trump will deal with the rest of his term – compliments of Joe Biden. China, says Bauer, made incredibly dangerous advances during those four years. "And just like every other mess Biden created, it's left to Donald Trump to do his best to try to clean it up," he says.

While U.S. President Donald Trump paused import taxes this week on dozens of countries who want to make deals, he raised tariffs on China and they now total 145%. China has denounced the policy as “economic bullying" and promised countermeasures. The new tariffs begin Saturday.

Chinese tariffs will affect goods like soybeans, aircrafts and their parts and drugs — all among the country's major imports from the U.S. Beijing, meanwhile, suspended sorghum, poultry and bonemeal imports from some American companies last week, and put more export controls on rare earth minerals, critical for various technologies.

The United States' top imports from China, meanwhile, include electronics, like computers and cell phones, industrial equipment and toys — and consumers and businesses are likely to see prices rise on those products, with tariffs now at 145%.