President Donald Trump announced May 10 that the U.S. would be raising tariffs to 25 percent on $200 billion worth of Chinese goods.
The announcement came hours after trade talks in Washington stalled between the two nations.
The tariffs, which are an increase from the 10 percent tax levied on select Chinese imports, will cover thousands of goods.
Chinese and U.S. representatives had been working throughout the week to negotiate a trade deal. However, President Trump says the deal soured when China tried to change its stance on policy.
“China should not renegotiate deals with the U.S. at the last minute,” President Trump Tweeted May 10.
In response, a spokesperson for China’s Ministry of Commerce released a statement saying, “China deeply regrets that it will have to take necessary countermeasures. The eleventh round of China-U.S. high-level economic and trade consultations is underway. It is hoped that the U.S. and the Chinese side will work together to resolve existing problems through cooperation and consultation.”
The tariffs are expected to have wide-ranging repercussions on U.S. businesses and manufacturers.
Kip Eideberg, vice president of government affairs for the Milwaukee-based Association of Equipment Manufacturers, says in a statement that the tariffs will “drive down exports and suppress job gains for the industry by as much as 400,000 over 10 years. It will also invite China to hit back at American businesses, farmers, communities and families.”