China plans to retaliate against the latest round of U.S. tariffs, despite President Trump’s announced delay of implementation. Originally planned for September 1, the ten percent tariffs are delayed until December 15, to avoid impacting holiday shoppers, according to the president. China vows to counter the latest round of tariffs that will total $300 billion once fully implemented. The Chinese finance ministry says the tariffs “violated a consensus reached between Trump and Chinese President Xi Jinping reached in June, according to Reuters.
Negotiators spoke over the phone this week and still plan to meet in September in Washington. However, the tariff threat from Trump and China’s vowed retaliation, along with developing unrest between China and Hong Kong, have sparked fear in financial markets the talks may again fail. Financial analysts have predicted that the trade war would lead to a U.S. recession in the next year, if escalated. Agriculture is facing the brunt of China’s retaliation with China recently stopping the purchases of U.S. agricultural products.