JACKSONVILLE, Fla. – China is striking back at the United States as the trade war between the world's two biggest economies continues to escalate.
Beijing said Monday that it will increase tariffs on roughly $60 billion worth of U.S. goods -- including American cotton, machinery, grains and aircraft parts -- on June 1. More than 4,000 items are affected, most of which will carry tariffs of 25% -- up from 10% when they were first levied last September.
The move follows Friday's increase in U.S. tariffs on $200 billion worth of Chinese exports from 10% to 25%. The Trump administration, which has accused China of backtracking on previous trade commitments, sought to turn up the pressure on Beijing after months of talks failed to produce a breakthrough.
“Simply put, this will raise prices on what we import from China. In the short run, we may not be able to simply say we're not importing. We will pay the price,” said Dr. Hassan Pordeli, a professor of economics and finance at Jacksonville University.
Pordeli estimates that of Jacksonville’s $26 billion trade sector, about $500 million is with China.
He said the effects of the tariff will not impact consumers immediately.
“Not immediately, but within the next few months,” Pordeli said.
Jacksonville's primary dealings with China are chemicals, cigars, agriculture and steel. Pordeli said small businesses will take the hit before mid- and large-sized ones, with the average family of four seeing a $767 out-pocket-expense directly related to the tariffs.
“As a consumer, unfortunately, there's not much you can do. These are policies that have already been implemented and you may actually feel the pain," Pordeli said.
On Monday, China announced that:
- Category 1 (includes cotton, machinery, grains) went from 10% to 25%.
- Category 2 (includes aircraft parts, optical instruments, certain types of furniture) went from 10% to 20%
- Category 3 (includes corn flour, wine) went from 5% to 10%.
- Category 4 (includes certain types of chemical, rare earths, medical equipment like ultrasound and MRI machines) stayed the same at 5%.