Likely impact of US-China trade war: Prices up, growth down

July 6, 2018
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FILE- In this June 29, 2017, file photo containers are stacked up in Elizabeth, N.J., as a truck drives by at Port of Elizabeth. The U.S. has threatened to impose 25 percent duties on $34 billion in Chinese products starting Friday, July 6, 2018, and China has said it will fire back with corresponding tariffs. (AP Photo/Julio Cortez, File)

WASHINGTON (AP) — The world’s two biggest economies have fired the opening shots in a trade war that could have wide-ranging consequences for consumers, workers, companies, investors and political leaders.

With the United States slapping a 25 percent tax on $34 billion worth of Chinese imports starting Friday, China was set to hit back with taxes on an equal amount of U.S. products, including soybeans, lobsters, sport-utility vehicles and whiskey.

The United States accuses China of using predatory tactics in a push to supplant U.S. technological dominance. The tactics include forcing American companies to hand over technology in exchange for access to the Chinese market, as well as outright cyber-theft. Trump’s tariffs are meant to pressure Beijing to reform its trade policies.

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