China is set to fire the next salvo in the escalating trade conflict with the United States, announcing on Monday it will raise tariffs on $60 billion in U.S. goods at the start of next month.
China's Ministry of Finance said it will hike tariffs to as high as 25 percent on the $60 billion in American imports. Those rates will rise from levels of 5 or 10 percent, depending on the goods. The announcement marks the latest development in a growing tit-for-tat conflict between the two economic giants and came just after President Donald Trump had warned China against retaliating.
Trump, however, said later on Monday that he was negotiating from a position of strength, pledging to mitigate much of China’s retaliation, which he predicted would target U.S. farmers.
“I love the position we are in. There can be some retaliation, but it can't be very, very substantial by comparison,” he told reporters in the Oval Office. “I think we’re in a very good position, and I think it’s only going to get better.”
Since raising tariffs on $200 billion in Chinese goods late last week, Trump has been publicly warning Beijing not to hit back, saying it "will only get worse" for the country if it takes further action.