This is How China Responded to Trump’s Tariffs

The stock market saw a big day of losses on Thursday after it was revealed that China was not included on a list of countries exempt from President Trump’s tariffs.

On Friday the 25% tariff on steel and 10% tariff on aluminum are expected to take effect.

Traders showed their concerns over a possible China trade war and shares of many companies, including steel companies, saw big losses.

It was on Thursday that Trump signed an executive memorandum that will impose tariffs on up to $60 billion in Chinese imports. According to Trump, “This is the first of many” trade actions.

Trade Representative Robert Lighthizer told a Senate panel that the President has decided to “pause” the import duties on the EU, Argentina, Australia, Brazil, Canada, Mexico and South Korea.

Lighthizer said to the Senate panel, “The idea that the president has is that, based on a certain set of criteria, that some countries should get out. There are countries with whom we’re negotiating and the question becomes the obvious one that you think, as a matter of business, how does this work? So what he has decided to do is to pause the imposition of the tariffs with respect to those countries.”

China didn’t delay in retaliating however. The country announced on Friday a plan for 128 reciprocal tariffs on 128 U.S. products that include wine and steel.

The country’s commerce ministry posted the retaliation on its website and said that, “U.S. goods, which had an import value of $3 billion in 2017, include wine, fresh fruit, dried fruit and nuts, steel pipes, modified ethanol, and ginseng, the ministry said. Those products could see a 15 percent duty, while a 25 percent tariff could be imposed on U.S. pork and recycled aluminum goods.”