Trump raises tariffs on Chinese goods as trade war escalates

WASHINGTON, D.C. (AP) - President Donald Trump said products coming from China that were slated to be hit with a 10% tariff on Sept. 1 will now face a 15% tariff.

President Donald Trump | Photo Source: AP Photo / Carolyn Kaster

Trump also says goods and products currently being taxed at 25% will be taxed at 30% starting Oct. 1.

Trump's comments come after China said it would pursue new tariffs of 5% and 10% on $75 billion of U.S. products.

The tariffs would take place in two steps, just as the U.S. said it would do earlier this month in imposing 10% tariffs on $300 billion of Chinese goods.

The rising tensions between the world's two biggest economies unnerved investors already on edge Friday.

The Dow Jones Industrial Average dropped 623 points Friday as companies and business groups urged the two countries to get to the negotiating table.

The Consumer Technology Association, a trade group that runs the annual Consumer Electronics Show, said that "enough is enough" when it comes to the escalating tariffs.

The CTA said in a statement Friday that President Trump's tariffs are the worst economic mistake since the 1930 Smoot-Hawley Act raised tariffs just as the world was sliding into the Great Depression.

The group said it is clear that tariffs are not moving the U.S. toward a deal with China, and that it is time to end the trade war and come to an agreement.

The CTA represents more than 2,200 companies in the technology industry.

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