After the latest round of trade negotiations between the U.S. and China, President Trump announced that in the absence of a comprehensive and enforceable trade deal that on September 1, he would impose a 10% tariff on approximately $300 billion worth of goods imported from China. This action was first proposed in the Spring but has been pending while negotiations between the countries were ongoing. The tariffs could be raised as high as 25 percent depending on how the Administration views the actions China does or does not take.
China responded to the news by allowing its state-controlled currency, the Yuan, to drop to its lowest value since 2008, thus allowing Chinese imports to the U.S. to remain competitive. While the current state of trade talks is decidedly dim, many believe that if China begins taking steps to fix issues that are key priorities for the U.S. Administration, such as intellectual property theft, they may escape further tariffs.