In retaliation to President Trump’s tariffs on steel and aluminum imported from China, Beijing has now imposed additional tariffs on 128 food and beverage commodities imported from the U.S. The Chinese government will begin enforcing these extra tariffs on Monday, April 2nd. The tariffs will affect around $3 billion worth of U.S. products.

120 products will be subjected to a 15% rate increase including fruits, nuts, and wines. Pork, scrap aluminum and six other products will be subjected to an additional 25% increase.

This announcement from Beijing deepens fears of a potential trade war between the two countries, which could have a devastating effect on the global economy. The imposed tariffs on pork and fruits hit U.S. farmers, many of whom voted for President Trump in the 2016 election, the hardest.

President Trump imposed a $60 billion tariff on Chinese imports in late March in response to China’s alleged theft of U.S. intellectual property and technology. Beijing’s retaliation is not a result of the announcement of tariffs on goods affected by intellectual property infringement, but rather is a result of the tariffs imposed on steel and aluminum.

Shapiro will continue to monitor the situation and provide updates as they become available.