Over 5,000 US products coming in to China may be hit with a 25% import tax.
This is a significant increase from what use to be 10% tax on these incoming products.
The increase will have an impact on foods such as frozen vegetables & cooking oil.
Also, appliances & clothing will be hit by this tax increase.
Trump is threatening another tax increase which has China prepared to put ban on rare earth minerals.
China has released a document blaming the US for a breakdown in trade talks.
According to Bloomberg, China has accused Trump of making unreasonable demands. Morgan Stanley has voiced concerns that a global recession is imminent if Trump were to impose 25% tariffs on Chinese exports.
The problem is by the time Trump realizes he is making a huge mistake, he may not even be in office. The trade wars and economical impact will be passed on to the next President if Trump loses the 2020 election. Of course, Trump supporters will brag about how great the economy was under Trump and never understand the downside of Trumps time in office. Thus the cycle will continue.
Victor J Morrow