Companies and investors alike are preparing for the worst on Friday, with the U.S. poised to enact 25% tariffs on $34 billion in Chinese goods and Beijing ready to hit right back.
President Donald Trump told reporters on Air Force One on Thursday that the tariffs would go into effect shortly after midnight as scheduled. The U.S. trade representative has sent out a note declaring that any goods entering the country or withdrawn from warehouses at or after 12:01 a.m. Friday, Washington time, will be subject to tariffs.
A full-out trade war between the world's two top economies would risk sinking global growth by forcing companies to seek new buyers and suppliers for goods that have become dramatically more expensive.
Trump calls the tariffs retaliation for Chinese intellectual property abuses. These will apply to 818 types of products arriving in the U.S., including automobiles, semiconductors and industrial machinery. Another $16 billion in levies are to be applied later.
