Chinese shipping containers are stored beside a US flag after they were unloaded at the Port of Los Angeles in Long Beach, California on May 14, 2019. – Global markets remain on red alert over a trade war between the two superpowers China and the US, that most observers warn could shatter global economic growth, and hurt demand for commodities like oil. (Photo by Mark RALSTON / AFP) (Photo credit should read MARK RALSTON/AFP/Getty Images)
MARK RALSTON | AFP | Getty Images
China just slapped new tariffs on American goods. Here are the products that stand to be the most effected by the new levies.
China announced Friday it will impose new tariffs on $75 billion worth of U.S. goods in addition to restarting levies on American autos.
The Chinese State Council said it decided to impose the tariffs of either 5% to 10% on either Sep. 1 or Dec. 15. China also added a 25% tariff on U.S. cars and a 5% on auto parts and components, which will go into effect on Dec.15.
Electronics, including cellphones and chips, is the category with the biggest value of American imports into China. Apple shares dropped 4%. The VanEck Vectors Semiconductor ETF (SMH) slid 3.5% as Nvidia and Broadcom both fell around 4.5%.
Machinery is another large category of Chinese imports, which dragged down shares of Caterpillar 3%.
Following China’s tariff announcement President Donald Trump ordered in a series tweets that U.S. manufacturers find alternatives to their operations in China, sending markets plunging.