The Trump administration plans to announce new tariffs on $200 billion worth of Chinese goods prior to U.S. talks with China, The Wall Street Journal reported.
The threats from both sides risk unravelling a new diplomatic initiative led by Treasury Secretary Steven Mnuchin, which is supported by top U.S. financial and business executives.
Chinese officials said that if Trump carries out his plan to announce new tariffs, as expected, the agreement could fall through, WSJ reported.
“If countries will not make fair deals with us, they will be tariffed!” wrote the president on Twitter Monday morning.
Markets dipped as fear that the escalating trade war could thwart global growth, according to Reuters. The STOXX Europe 600 Index fell as much as 0.2 percent, and Germany's DAX, which includes large exporters and automakers, dropped a half percent. France's CAC 40 index and Britain's FTSE 100 each fell 0.3 percent.
Several manufacturers at the Newport International Boat Show, held this past weekend in Rhode Island, said their concerns were growing as they felt the effects of the tariffs already implemented.
“We just got hit with a 25 percent increase on a shipment of windshield wipers, so we’re really starting to feel it,” Imtra president Eric Braitmayer told Trade Only Today. “Nobody thought this would last so long.”
Sabre and Back Cove are seeing stainless steel from Canada increase in price because Canada is being tariffed on the rolled stainless steel it buys from the United States, Bentley Collins, vice president of marketing and sales, told Trade Only Today.
“We decided midyear to increase our prices by 3 percent, which we never do midyear,” Collins said. “The cost to us — our stainless steel rails are $100,000 extra. It’s killing American jobs.”
Collins said sales in Europe and Canada have dried up as well because of retaliatory tariffs.
The escalating situation prompted the National Marine Manufacturers Association to join with 80 other industry groups to oppose the tariffs.
NMMA government and legal affairs vice president Nicole Vasilaros has been commenting on mainstream news outlets, from Reuters to NPR’s Marketplace, saying that members are seeing costs rise as much as 35 percent.
“The NMMA has done an incredible job standing up for us,” said Braitmayer. “That’s why everyone should support the BoatPAC. It’s very easy to feel powerless in this situation. We can all talk to our representatives, but they are speaking for the industry as a whole.”