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The big picture: Trump's latest Chinese tariffs announcement

Donald Trump grimaces while shaking hands with Xi Jinping before American and Chinese flags.
Photo: Artyom Ivanov/TASS via Getty Images

President Trump announced on Monday that he wants to identify $200 billion worth of Chinese exports on which to add tariffs of 10% — in addition to the $50 billion in tariffs the administration has already announced — which could set off the next battle in a burgeoning trade war.

What to expect: China has said it will hit back with its own tariffs, as it has done before. If that happens, Trump said in last night's announcement that he wants to identify another $200 billion of Chinese exports to tax. That would total $450 billion in Chinese exports. China exported $505 billion to the U.S. in 2017, so the U.S. would nearly run out of exports to tax. The U.S. exported about $130 billion to China last year.