>> An escalation in the trade dispute with China. President Trump in a statement Friday said the US will implement a 25% tariff on $50 billion of goods from China related to intellectual property and technology. He also pledged to impose further levies if the Asian nation takes retailiatory measures.
China immediately vowed to retaliate. The country's commerce ministry said the measures harm the interests of both countries and disrupt world trade order. Beijing has published its own list of threatened tariffs on $50 billion of US goods, including soybeans, aircraft, and autos. Reuters' David Lawder is on the story.
>> It's unclear when the retaliation might actually start. These tariffs don't really go fully into effect until July 6th so the United States is holding in reserve a list of tariffs on a $100 billion worth of additional Chinese products. These tariffs would be a response to China's retaliation to the first round of tariffs.
This is the tit for tat that economists warned about that could spiral into a deeper trade war.>> Trump said the tariff list includes goods from China's Made in China 2025 strategic plan to dominate high-technology industries that will, quote, drive future economic growth for China but hurt economic growth for the United States and many other countries.
>> The US trade representative's office is concerned about is that China is gonna do the same thing in semiconductors and aircraft and other higher tech industries that it did with steel and aluminum. Essentially, overbuild production capacity and flood the market so that it makes it more difficult for market-based companies that have to earn a return to compete.
>> While Trump stressed his friendship with Xi Jinping, he repeatedly called the trade relationship between the two countries unfair. Washington and Beijing appear increasingly to be headed toward a trade war after several rounds of negotiations failed to resolve US complaints over Chinese industrial policy, market access, and a $375 billion trade gap.