Trade tensions between the United States and China dragged the Dow down 200 points at Monday morning’s market open after U.S. President Donald Trump introduced a 25 percent tariff on $50 billion of Chinese goods last Friday. After President Trump’s opening salvo, China countered with a 25 percent tariff on $34 billion of U.S. goods.
According to President Trump, Chinese goods affected by the tariffs include those “that contain industrially significant technologies.” The affected 818 Chinese imports was worth about $34 billion–a measure that would take place on July 6. An additional round of tariffs worth $16 billion on Chinese goods will require approval, which could bring the total to $50 billion worth of Chinese goods if approved.
The Chinese Ministry of Commerce said the tariff on U.S. goods would include soybeans, electric vehicles, hybrid vehicles, seafood, and pork. In total, China’s proposal would include 659 U.S. goods worth $50 billion.