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Illustration: Rebecca Zisser/Axios

The Trump administration's trade war with China entered a new phase on Sunday morning as new 15% tariffs on about $110 billion of Chinese imports took effect, Bloomberg reports.

Why it matters: Per the New York Times, the move changes the rules of trade in ways that have no recent historic precedent. "This is the first time U.S. consumers will see the costs quite directly, right as we head into the busiest shopping time of the year," Western Washington University economics professor Edward Alden told the Washington Post. China has introduced retaliatory taxes, the first phase of which came into effect Sunday.

  • The world’s 2 largest economies are now even further apart by the trade war, despite President Trump and Chinese officials announcing last month plans to resume negotiations.

The state of play: American consumers can now expect higher prices on consumer items like "clothing, toys, home goods, and electronics," per the Retail Industry Leaders Association.

  • J.P. Morgan estimates the tariffs will cost the average American household $1,000 a year.
  • China's retaliatory tariffs range from 5% to 10% on a portion of $75 billion U.S. goods, with the second phase of taxes due to take effect Dec. 15.

What he's saying: Trump told reporters on Friday that "we’re having conversations with China" and that meetings between the 2 sides had been scheduled for September, but the tariffs were still "on."

  • He denied via Twitter on Sunday morning that the tariffs would hurt American consumers.
A tweet previously embedded here has been deleted or was tweeted from an account that has been suspended or deleted.

The bottom line: Per Axios' Jonathan Swan, the biggest tool Trump has to pump the economy and the markets is a trade deal with China. But if anything, senior administration officials have turned harder against China in recent weeks thanks to national security concerns in Hong Kong and Taiwan — and these retaliatory tariffs aren't going to help.

Editor's note: This article has been updated with President Trump's latest comments.

Go deeper:

Go deeper

Biden's pick to lead major banking regulator drops out

Saule Omarova, nominee for Comptroller of the Currency, at a confirmation hearing on Nov. 18. Photo: Anna Moneymaker/Getty Images

President Biden's pick to head one of the country's most powerful banking regulators is dropping out of consideration for the post, according to a statement from Biden that accepted the withdrawal.

Why it matters: Saule Omarova, nominated to lead the Office of the Comptroller of the Currency, faced a tough path to confirmation — with opposition from Republicans and moderate Democrats.

Judge temporarily blocks Biden vaccine mandate for federal contractors

President Biden delivers remarks at the White House on Dec. 6 in Washington, D.C. Photo: Chip Somodevilla via Getty Images

A federal judge on Tuesday temporarily blocked President Biden's vaccine mandate for federal contractors nationwide.

Why it matters: It's the latest setback in the Biden administration's rollout of COVID vaccine requirements. Federal judges in two states temporarily barred the administration from enforcing mandates for millions of workers last week.

Biden threatens Putin

Photo: Kremlin Press Office/Handout/Anadolu Agency via Getty Images

In a video call that lasted for just over two hours on Tuesday, President Biden warned Russian President Vladimir Putin that if Russia invades Ukraine the U.S. will impose unprecedented sanctions and provide additional weaponry to the Ukrainians, national security adviser Jake Sullivan said.

Why it matters: Russia's military activity on the border with Ukraine has triggered alarms from the U.S. and its European allies of a potential large-scale Russian invasion in early 2022. Sullivan said Biden made clear to Putin that, "things we did not do in 2014, we are prepared to do now."