U.S. President Donald Trump announced tariffs on $50 billion worth of goods from China and said he would impose additional levies in the event of retaliation, which was immediately promised by Beijing.
"In light of China’s theft of intellectual property and technology and its other unfair trade practices, the United States will implement a 25 percent tariff on $50 billion of goods from China that contain industrially significant technologies," Trump said in a statement.
"The United States will pursue additional tariffs if China engages in retaliatory measures, such as imposing new tariffs on United States goods, services, or agricultural products; raising non-tariff barriers; or taking punitive actions against American exporters or American companies operating in China," he said.
China's Commerce Ministry responded by saying it would 'immediately introduce taxation measures of the same scale and the same strength," DPA reported.
A list provided by the Office of the United States Trade Representative detailed 1,102 separate products from industrial sectors, including those related to the "Made in China 2025" program, Beijing's attempt to make the country a major competitor in advanced manufacturing. The tariffs cover industries including aerospace, information and communications technology, robotics and automobiles. Covered imports do not include goods commonly purchased by U.S. consumers, like televisions and cell phones.
S&P 500 Futures fell 0.55% at 8:49 a.m. ET after the widely anticipated announcement, while the yield on 10-year U.S. Treasurys fell 3 basis points to 2.91%.