WASHINGTON (AP) — President Donald Trump brought the world’s two biggest economies to the brink of a trade war Friday by announcing a 25 percent tariff on up to $50 billion in Chinese imports to take effect July 6.

Beijing quickly responded that it would retaliate with penalties of the same scale on American goods.

In announcing the U.S. tariffs, Trump said he was fulfilling a campaign pledge to crack down on what he contends are China’s unfair trade practices and its efforts to undermine U.S. technology and intellectual property.

“We have the great brain power in Silicon Valley, and China and others steal those secrets,” Trump said on “Fox & Friends.” ‘’We’re going to protect those secrets. Those are crown jewels for this country.”

The prospect of a U.S.-China trade war jolted financial markets Friday. The Dow Jones industrial average was down more than 220 points in mid-afternoon trading.

The U.S. tariffs will cover 1,102 Chinese product lines worth about $50 billion a year.
Included are 818 items, worth $34 billion a year, from a list of 1,333 the administration had released in April. After receiving public comment, the U.S. removed 515 product lines from the list, including TVs and some pharmaceuticals, according to a senior administration official who briefed reporters on condition of anonymity.

The administration is targeting an additional 284 Chinese products, which it says benefit from Beijing’s strong-armed industrial policies, worth $16 billion a year.

But it won’t impose those tariffs until it gathers public comments.
The Trump administration has sought to protect consumers from a direct impact from the tariffs, which amount to a tax on imports. The tariffs target mainly Chinese industrial machinery, while sparing consumer goods such as smartphones, TVs, toys and clothes that Americans purchase from China.

These tariffs will impose higher costs on U.S. companies that use the equipment. And over time, those costs could be passed on to consumers.

The administration characterized the tariffs it announced Friday as entirely proper.

“It’s thorough, it’s moderate, it’s appropriate,” U.S. Trade Rep. Robert Lighthizer said on Fox Business Network’s “Mornings With Maria.”

Lighthizer added, “Our hope is that it doesn’t lead to a rash reaction from China.”

But Beijing’s Commerce Ministry retorted in a statement:
“The Chinese side doesn’t want to fight a trade war, but facing the shortsightedness of the U.S. side, China has to fight back strongly. We will immediately introduce the same scale and equal taxation measures, and all economic and trade achievements reached by the two sides will be invalidated.”

A ministry statement gave no details of what U.S. goods would be hit by Beijing’s retaliatory tariffs. But China in April had announced possible targets, including light aircraft, orange juice, whiskey, beef and soybeans — an economically and politically important export from America’s heartland.

Trump has already imposed tariffs on steel and aluminum imports from Canada, Mexico and European allies, sparking anger and retaliatory threats from some of America’s closest and longtime allies.

By June 30, the administration is expected to finish writing rules to restrict China’s ability to invest in U.S. technology.