- President Donald Trump on Friday announced tariffs on $US50 billion worth of imported Chinese goods.
- The new tariffs directly affect aerospace, industrial machinery, raw materials, and automotive sectors, the trade representative said.
- Stocks including Boeing,Caterpillar, and automakers fell in after the tariffs were announced.
Industrial stocks sank Friday morning after the Trump administration announced new taxes on $US50 billion worth of goods imported from China.
“This list was compiled based on extensive interagency analysis and a thorough examination of comments and testimony from interested parties,” the office of the US Trade Representative (USTR) said in a press release.
“It generally focuses on products from industrial sectors that contribute to or benefit from the “Made in China 2025″ industrial policy, which include industries such as aerospace, information and communications technology, robotics, industrial machinery, new materials, and automobiles.”
Automaker stocks also fell slightly, in line with broader benchmark indexes like the Dow Jones Industrial Average, which was down about 0.7% at the time of publication.
The US Trade Representative’s office says the tariffs will come in two parts.
The first section will be implemented on July 6 and apply to 818 goods with a total value of $US34 billion. The second set, which includes 284 goods equal to $US16 billion worth of imports, would come later and be subject to additional public comments.
China’s government has already promised that retaliation is imminent. A statement from the Chinese Ministry of Commerce said that the country would implement tariffs on a similar scale on US goods.
Friday’s announcement is also widely seen as a “significant escalation of the trade war,” according to experts. You can read more about the potential repercussions here.
Bob Bryan contributed to this report.
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