China slaps more tariffs on an additional $75 billion of US goods

China announced a new round of tariffs on an additional $75 billion in U.S. goods.

What's the background?

Since March 2018, the United States and China have been locked in an escalating trade war, with each nation repeatedly slapping retaliatory tariffs on the other.

Due to this trade standoff, U.S. exporters have lost $12 billion overall in exports to China. The U.S. is also engaged in trade disputes with other nations, which have also had a negative impact. Some industries have been harder hit than others. The U.S. government has deemed it necessary to give $16 billion in emergency aid to farmers impacted by the tariffs.

At the beginning of August, Trump announced that the U.S. would be slapping tariffs on all remaining imports from China. However, two weeks later the United States Trade Representative clarified that these tariffs would be delayed until Dec. 15.

On Tuesday, Trump admitted that these tariffs could have a negative effect on the U.S. economy, possibly even causing a short recession, but that it would be worth it because "somebody had to take China on."

What happened now?

On Friday, China revealed that it would be targeting $75 billion worth of imports from the U.S. at 5 percent or 10 percent rates. Targeted products include soybeans, whiskey, coffee, and oil. These tariffs will take effect on Sept. 1.

In addition, China will resume tariffs on automobiles that it had suspended. These will begin again on Dec. 15.

Trump promised on Twitter on Friday that he would be "responding to China's Tariffs this afternoon."