In a tit-for-tat response, China announced 25% tariffs on critical American exports including cars, planes and soy.
Many of the other goods on the list—including sorghum and beef—intentionally affect the U.S. Farm Belt.
Trump rallies most of his support in the South. The Wall Street Journal cited people familiar with the plans for Chinese retaliation saying Beijing intentionally targeted these areas.
The response is against U.S. President Donald Trump’s punishing Beijing for what it says are unfair practices to acquire American technology.
China’s cabinet, the State Council, said Wednesday that the tariffs will cover 106 categories of products – a total of $50 billion of Chinese imports of U.S. products.
Neither the U.S. nor Chinese tariffs take effect immediately, said the Wall Street Journal.
The Chinese government didn’t specify when its penalties would be imposed but a long trade war with massive consequences on both sides of the barrier is now expected.
A Chinese Finance Ministry statement said that authorities are watching how the U.S. implements its proposed trade actions.
Beijing has targeted the biggest American exports to China: soybeans and aeroplanes.
With the world now in the face of a full-blown trade war markets have started to feel the jolt.
Hong Kong’s Hang Seng Index dropped 2.2% to a near eight-week low, while May crude oil futures tumbled 1.2% to $62.78 a barrel on the New York Mercantile Exchange.
Trump believes he is winning the trade war, saying that it is an easier war to fight.