Transcript for Trump escalates China trade war with new 10% tariff
President trump tonight escalating his trade war with China, threatening new tariffs, that they're coming soon, and they are sweeping. The Dow reacting immediately to the news today, plunging, closing down 280 points. And tonight, how it could affect the prices you pay on a whole range of goods. ABC's Kyra Phillips is at the white house tonight. Reporter: Tonight, president trump escalating his trade war with China, slapping a new 10% tariff on $300 billion worth of Chinese products. For many years, China has been taking out hundreds of billions of dollars a year and rebuilding China. It's time that we rebuild our Reporter: The tariffs mean American shoppers could see prices go up on everything from clothing to smartphones to TVs to toys. The chamber of commerce saying tonight, the president's move will "Inflict greater pain on American businesses, farmers, workers and consumers, and undermine an otherwise strong U.S. Economy." What do you say to American business owners and consumers who are going to pay the price for these tariffs? What would you say when China, for the last 20 years, has been taking hundreds of billions of dollars out of our country? So, now it's time that we change things around. If they don't want to trade with us anymore, that would be fine with me. Reporter: But China buys billions of dollars in crops from American farmers. And they've responded with tariffs of their own. In may, with the trade war in full swing, we spoke with John kiefner, a soybean farmer from Illinois. I'm preparing for the worst. Reporter: China bought 60% of U.S. Soybean exports before the trade war started. Not anymore. A lot of farmers are going to have to come up with alternative sources of income. Reporter: The president speaking to reporter bfrs he headed off to a campaign rally in Ohio. At his last one, the crowd breaking out into a racist chant about congresswoman ilhan OMAR, who came to the U.S. As a refugee from Somalia. Send her back! Send her back! Reporter: So, if his supporters do it again tonight, will he try and stop them? I don't know that you can stop people. I don't know that you can. I mean, we'll see what we can do. I'd prefer that they don't, but if they do it, we'll have to make a decision then. Kyra Phillips with us live at the white house tonight, and Kyra, I wanted to show another image coming in tonight. I know you are aware of this. This photo of congresswoman OMAR, she tweeted the image with house speaker Nancy Pelosi, just a short time ago. The two are in Ghana. And clearly this is meant as a show of solidarity tonight, Kyra? Reporter: Indeed, David. Pelosi and OMAR, part of a congressional delegation to Africa. Congresswoman OMAR tweeting "They said send her back, but speaker Pelosi didn't just make arrangements to send me back, she went back with me." Kyra, thank you.
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