Trade war between U.S. and China escalates overnight

The looming trade war between two of the world’s biggest economies: the United States and China is escalating.  With the Trump administration firing the first official shots. 

The first strike in the intensifying trade war came just after the clock struck midnight. The U.S. slapping levies on $34 billion dollars worth of Chinese goods. President Trump says that number will increase to $50 billion in the next two weeks.

China responded quickly with $34 billion in tariffs on U.S. Products with the commerce ministry saying necessary counterattacks are now in place. 

The President touched on the topic at his rally in Montana. He said, "Do you know if we knock down the trade deficit by just a little bit we pick up in GDP that is just 25% we pick up 1 point."

The Trump administration says the tariffs are necessary to stop China from stealing intellectual property and overproducing metals.  But republican lawmakers from the nation’s heartland and business leaders have reservations.  

Jeff Schwager runs the Sartori cheese plant in Wisconsin.  He says the President’s trade moves will cost him millions in annual sales. Schwager says, "I have yet to find an example where tariffs have worked for the long term good of the country that first imposes them."

The U.S. Chamber of Commerce says retaliatory tariffs against the U.S. threaten about a billion dollars of Wisconsin’s exports. 
And the European Union says it will soon take action to keep steel produced for the U.S. market from flooding into Europe due to those tariffs introduced by President Trump.