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Tensions Increase Between the U.S. & China During Trade Talks

The U.S, China trade war escalated overnight on Thursday when the U.S. raised tariffs on billions of dollars worth of items made in China but sold in the U.S.

Treasury Secretary Steven Mnuchin and the U.S. Trade Representative Robert Lighthizer met with Chinese negotiators for another round of trade talks, Friday morning.

As announced by President Trump, earlier this week, the U.S. raised tariffs on $200 Billion worth of Chinese-made goods from 10% to 25%.

On Friday, President Trump tweeted:

President Trump told media, “We were getting very close to a deal and then they started to renegotiate the deal, we can’t have that. Can’t have that.”

If no deal is reached between the two world powers, President Trump says he is prepared to put a 25% tariff on another $325 billion worth of Chinese-made goods that would impact everything China ships to the U.S.

China says it will respond and higher tariffs on American-made goods are likely.

While Beijing has yet to announce which products it will target, U.S. farmers who have already been impacted by trade tensions could be hit even harder.

One farmer from Polk County, Iowa says some of his neighbors will have to sell their farms, if the U.S. and China can’t come to a deal.

“There’s a lot of guys where their brokers have been telling them, ‘hang on, hang on, hang on’ and ‘this thing’s gonna get better when the deal gets done,'” said Doug Onstot of Polk County, Iowa.

The new tariffs on Chinese goods could be passed onto consumers, if they remain in effect for an extended period of time.

But President Trump says that may not be a bad thing.

“Business will pour back into our country so instead of making the product, it will be the old fashioned way the way we used to do we made our own product,” said President Trump.

The President tweeted to manufacturers Friday morning saying:

The Consumer Price Index released Friday morning showed a modest increase in prices Americans pay. The list was topped by rising costs for gasoline, rent and healthcare costs. However, inflation remains tame.

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