Just after midnight tonight the Trump administration is set to impose tariffs on $34 billion of Chinese goods, escalating a global trade war that has pitted the U.S. against trading partners around the world.
- "Businesses are bracing for disruptions in sales and supply chains," the Wall Street Journal reports (subscription), as a Chinese response could hit U.S. producers of "automotive products, farm crops and other goods."
- China warned that the U.S. is "opening fire on the entire world, including itself" while at the same time promising that it wouldn't use the 12-hour time difference to impose retaliatory tariffs first (per the Guardian).
What's next: Already, several U.S. sectors are freaking out — soybean farmers losing business in China, aluminum metal companies hit inadvertently by tariffs, and GM, worried about soaring supply costs. Manufacturers fear the tariff war will prematurely cut short a renaissance triggered by low natural gas prices and tax cuts, reports Ed Crooks at the FT.