Trump escalates trade war with China, announces additional tariffs

President Donald Trump announced that he will put a 10% tariff on $300 billion worth of Chinese goods.
3:59 | 08/02/19

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Transcript for Trump escalates trade war with China, announces additional tariffs
We stay in Washington where president trump was also escalating the trade war in China so he announced in a tweet. That the US will put at 10% Tara. On an additional 300 billion dollars worth of Chinese goods coming into the US starting September. First so I want to bring in Devin Dwyer in our DC bureau DeVon always good to see you can you again remind us what a terror is and what this means for consumers. In the US. Take your belly act tariff everybody should remember is basically a tax. And its attacks on things we import. From different countries we of course bring a lot of things in from China athletic cheap athletic shoes clothing electronics and alike. I saw president truck imports are terrified China that means it's paid. By the companies here in the United States Americans. Who are bringing those goods in and so the companies are faced with the decision either have to eat that costs lower their profit margins. Or pass it on to consumers and that's where the risk. To everyone watching comes in because you bring in so many goods from China. In all likelihood if the president follows through on this threat to increase tariffs. On those products from China that means those prices are probably gonna go up and if you shop at target Wal-Mart costs go. Pretty much everything in most places has been brought in from China or has parts made in China as to the risk here on the economy is a significant one. Yet there will be an impact for sharing Caron what were people saying on your radio called and they understand this impact. A lot of questions about how that trickle down effect would impact everyday American consumers the president Kimberly frames this as. A transfer of money from China he'll always they China. Is pain niece Harris and we're taking in so much money tens of billions of dollars from China. In the form of these Harrison is 76 plane that's not how this works. So I think that does create a lot of confusion and people do have to understand that. Win companies are bringing in products and paying more for those products. You're gonna have to eat the cost or pass them on to the people that they're selling the products you and that's all of us. So I think there are a lot of questions about this need to continue fact checking the president because he keeps repeating this claim thing it's also worth noting that the administration. Get a lot of questions today about that impact and White House officials continue to say it will be me in this deal but to the president's top economic advisor Larry Kudlow said here at the White House just a few moments ago. Asked specifically about the timing of this these tariffs go into effect in September 1. Assuming a bit of a lag time there are people if they start doing their holiday shopping at the end of the year could see a real impact. They're brushing his office say it's millions steel. And DeVon China's that it will take necessary countermeasures. If this does go into effect this high what would that look like. As to be 12 punch to the US economy is what economists say Kimberly what if the Chinese import. It in if it imposed tariffs on goods that are coming from the United States. Hot into China things like agricultural products that means it's more expensive for the Chinese to buy the things we make the things we produce. Hot and perhaps they will buy less of them which is a big hit to farmers in the middle of the country other American producers. So it's a big concern that Chinese are threatening to ratchet up tariffs on bear ended this fight but. We should put a big note of caution here big caveat Kara knows this but while this president loves to issue threats. As a point of leverage we've been here many times before him are when he threatened to shut down the border with Mexico. And that fight he eventually backed ops we still have about thirty days before these things take a fact we'll have to see if the president can extract some concessions. Or whether he actually false or. All right Karen Travers and the White House and Devin Dwyer in our DC bureau thanks for joining us guys did deceive both.

This transcript has been automatically generated and may not be 100% accurate.

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