The opening shots of a trade war were fired when the Trump administration imposed a 25 percent tariff on $34 billion of imports from China, and Beijing promptly retaliated with duties on an equal amount of American products.
Trump has promised another round of tariffs on $16 billion of additional Chinese goods if China follows through with its threat to retaliate.
National Association for Manufacturers: "Tariffs will bring retaliation and possibly more tariffs", said Jay Timmons, president and CEO of NAM. A trade war could disrupt these flows and even shift the location of the final manufacture, to avoid penal tariffs in the export destination.
That could include "a wide range of products as diverse as tool sets, batteries, remote controls, flash drives and thermostats", he said, adding, "a strategy based on unilateral tariffs is the wrong approach, and it has to stop".
Trump has also called the state of trade between the USA and the EU "unfair", as official data shows a large trade surplus for the Europeans.
A statement from the Chinese Commerce Ministry denounced U.S. actions as "a violation of world trade rules" and warned that the current dispute between both countries was launching the "biggest trade war in history".
This tit-for-tat trade war would mostly impact states that voted "overwhelmingly" in favor of Trump in 2016 - relative to the states won by Hillary Clinton - as they possess "jobs and output significantly affected by tariffs", Dana Peterson, Citi's North America economist, said in a note Thursday evening.
States won by President Donald Trump in the 2016 election stand to lose the most as a trade war between the US and China kicks off, according to Citigroup research.
The president's tariffs, the PIIE's researchers conclude, are "a prime example of 20th century tools aimed at the knowledge-embodying trade flows of the 21st century".
The U.S. and China launched the opening salvos in a burgeoning trade war yesterday in a move that already has MA businesses fearing the collateral damage.
However, some firms like to be hit by the trade war posted declines.
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In addition to the $US16b under consultation, Mr Trump has flagged there could be more tariffs in store.
China is the biggest buyer of USA soybeans, importing more than $12.4 billion worth of the oil seed in 2017.
In retaliation, the European Union and Canada slapped tariffs in a tit-for-tat move. It also is rooted in the clash between American notions of free trade and Beijing's state-led development model. The Dow Jones Industrial Average shed 1,000 points from a high in mid-June, while the S&P 500 has also retreated notably since concerns about a trade war started to loom.
The president also takes issue with the size of the United States trade deficit with China. On Thursday, Trump warned that the United States may ultimately target over $500 billion worth of Chinese goods, or roughly the total amount that the United States imported from China a year ago.
Asia is bracing for the opening salvo in a tit-for-tat trade battle, with the United States imposing 25 percent tariffs on $US34b ($NZ50b) of Chinese goods today.
Trump ran for the White House on a vow to reverse decades of US policy by scrapping deals that he said put American manufacturers at a competitive disadvantage and by forcing USA trading partners to shrink their trade surpluses with the United States.
Moscow also announced Friday it had slapped 25 per cent tariffs on some U.S. goods, joining the global push-back against Trump's offensive.
"Imposing additional tariffs will increase the costs of Chinese companies in exports to the USA and thus make them face greater competition pressure", said Xiao Feng, deputy general manager of Shenzhen-based OneTouch Business Service Ltd., a subsidiary of e-commerce giant Alibaba Group.
USA crude rose 1.22 percent to $73.83 per barrel and Brent was last at $77.07, down 0.41 percent on the day. While Trump's duties do not apply to food products, Souhrada pointed that NAFEM member Henny Penny expects the tariffs to increase the price of their pressure cookers.
"We just want what we had before", he said. However, if and when the war escalates, tariffs would go up on the daily necessities Americans have got used to buying cheap.