Amid concerns from U.S. businesses that President Trump’s trade agenda will hinder a bustling economy, the administration is moving forward with its plan to impose tariffs on an estimated $34 billion worth of Chinese imports.
The levies set to take effect on Friday will hit products from nuclear reactor parts to electromagnets. The U.S. trade representative is considering 25 percent duties on an additional $16 billion in products, and Trump has threatened to increase the overall amount to as much as $500 billion. China has already pledged to respond with its own dollar-for-dollar tariffs.
[Related: Fed officials fear trade war risks have ‘intensified’]
The decision to move forward with the new duties is compounding fears that Trump’s policies and retaliatory measures from China and trading allies like the European Union will ultimately undermine the economic benefits gained from the GOP-led tax cuts.
The administration previously imposed a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports. The E.U. and Canada, in response, launched their own tariffs on U.S. goods like bourbon. The Commerce Department has received more than 22,000 requests for exclusion from what experts label as a new tax on American consumers.
The White House is also considering a 25 percent tariff on automotive imports, an action that General Motors warned could force the Detroit-based company to lay off workers.
The typically Republican-friendly U.S. Chamber of Commerce, meanwhile, launched a campaign Monday to push back against the Trump administration’s broader trade agenda. The effort highlights how each state could be impacted by actions like the new steel and aluminum tariffs.
A Chamber spokeswoman declined to discuss how much funding the group would allocate for the advocacy campaign.
Harley Davidson previously said it would shift production out of the U.S. in response to the E.U.’s retaliatory tariffs. The action prompted heavy criticism from Trump, who said this week his administration is speaking with competing motorcycle manufacturers who may want to increase production in the U.S.
