China on Friday hit the U.S. with $34 billion in retaliatory tariffs on 545 products, and they are expected to take particular aim at states that voted for President Trump in the 2016 election.
Bottom line: Trump had promised that such actions would be met with additional U.S. tariffs, which means the two countries may be staring down the black hole of a tit-for-tat trade war.
The retaliatory duties on the United States took place immediately after Washington's initial tariff hike on Chinese goods on Friday morning.
Why it matters: For U.S. businesses, this trade war creates both short-term and long-term complications.
What's next: Experts believe China may not be finished, reports the Washington Post. It could go beyond tariffs and increase the cost of custom inspections, while China's citizens could end up boycotting U.S. products — as happened last year to South Korea's Lotte Group.
