WASHINGTON D.C (News4Utah)- China is accusing the U.S. of starting the “biggest trade war” in history.
Chinese officials are retaliating against new tariffs imposed Friday by the Trump administration.
The U.S. and China seem to have begun a trade war.
The U.S. has slapped tariffs on $34 billion of Chinese exports to the U.S. Everything from boat propellers to x-ray machines.
President Trump says the tariffs will force China to re-evaluate its trade practices
Instead, China has slapped back. Placing tariffs on U.S. exports to China–everything from cars to crops.
Jeffrey Schott, an economist with the Peterson Institute says tariffs raise prices, and consumers will get caught in the crossfire.
“Consumers will react to higher prices; they’ll either buy less or put off purchases,” said Schott.
The White House says if China doesn’t back down it may impose another round of tariffs on more Chinese products within weeks.
Schott says the longer tariffs last, the longer the global economy suffers.
Republican Senator Pat Toomey has warned the President that American farmers will suffer most.
“The Ag community is more adversely affected by the retaliation against these ill-conceived tariffs,” he said.
Toomey wants Congress to limit the President’s trade powers. But Florida Republican congressman Neal Dunn says the White House deserves some time to shake things up..
“In a month or two or three, maybe we can get involved,” said Dunn.
However, experts warn if over the next few months the trade fight proves to be a drag on the U.S. economy it could cause problems for vulnerable Republicans running for re-election this November.