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Trump, China Announce Tariff Hikes; Markets Shudder

Created: August 23, 2019 07:22 PM

WASHINGTON (AP) - Escalating his trade war with China, President Donald Trump bumped up his tariffs on Chinese imports Friday, lashing back after Beijing raised taxes on U.S. products.

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In a tweet, Trump said he would be raising tariffs on $300 billion in Chinese goods from 10% to 15%. The Office of the U.S. Trade Representative also said that on Oct. 1 the U.S. would hike tariffs on another $250 billion in Chinese imports from 25% to 30%.

The move came hours after Beijing said it would hike tariffs on $75 billion in U.S. imports, escalating a conflict over trade and technology that threatens to tip a fragile global economy into recession.

The official Xinhua News Agency said the tariffs of 10% and 5% take effect on two batches of goods Sept. 1 and Dec. 15 but gave no details on what imports would be affected.

Earlier Friday, the president said he "hereby ordered" U.S. companies to seek alternatives to doing business in China. The escalating tensions between the world's two biggest economies sent the stock market into a tailspin. The Dow Jones Industrial Average closed down 643 points, or 2.4%, before Trump announced the new tariffs.

China's government appealed to Trump this week to compromise in deadlocked talks aimed at settling the dispute that has battered exporters on both sides and threatens to tip the global economy into recession.

Copyright 2019 The Associated Press. All rights reserved.

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