US and China to begin imposing 25% tariffs worth $34 billion each
Today, Beijing and Washington will each implement 25% tariffs on $34 billion worth of goods. The Chinee tariffs largely target products produced key Republican districts that voted for President Trump in the 2016 election.
The measures cover agricultural products, like soybeans, corn, wheat, beef, pork and poultry as well as automobiles. There are another $16 billion worth of Chinese tariffs still to be imposed, which would cover coal, crude oil, gasoline and medical equipment.
The Chinese measures follow a Canadian and EU tariffs strategy that targets the heartland of Trump’s voter base. The swing state of Wisconsin, which flipped to Trump by less than 1% in 2016, is home to Harley Davidson motorcycles and agricultural holdings—both targets of tariffs. Iowa and Nebraska’s soybean industries and Pennsylvania’s coal industry will also be hit by Beijing’s levies.
Expect increased Republican unease in Congress as the tariffs begin to bite into their support. Many GOP representatives are already opposed to tariffs on allies; after today, others may further distance themselves from White House trade policies. However, Congressional opposition is unlikely to sway President Trump, who views his trade policies as the principal reason behind his win in the traditionally Democratic Midwest states.
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