The U.S. trade war with China continues to escalate with no apparent end in sight.

Today, Beijing announced it will raise rates on American goods, a direct retaliation to President

Trump's sharp increase in tariffs on the world's second largest economy. Lisa Desjardin has this report.

On Chinese state television, an economic shot fired.

Word that Beijing is raising its tariff on U.S. goods from 84 to 125 percent, more than doubling the costs.

China is a responsible country. In the face of U.S. bullying and hegemony, compromise and concession are not a way

out. This after the Trump administration pushed U.S. tariffs on China to 145 percent earlier this

week. American small business owners are watching for fallout. Right now, as a lead business,

I think we are in a day-to-day basis.

Jose Garcia owns a party supply store in Los Angeles and imports much of what he sells.

Balloons, latex balloons, ribbons, bags, everything made in China.

But other industries say the tariffs could be a godsend, like these shrimpers on the Gulf

coast.

We're American businesses.

Our whole town thrives off the shrimp in industry.

Ken Garcia, no relation to Jose, says cheap imports have left U.S.

shrimpers struggling.

We really needed something to help us, you know, propel us back into

profitability. And it looks like these Trump tariffs are going to be able to do that.

This comes as Chinese state media reported that President Xi Jinping told world leaders,

China and Europe must oppose unilateral bullying. So let me make it clear.

Europe did not start this confrontation and Europe does not want this confrontation.

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