This is the Cato Daily Podcast for Friday, July 13th, 2018. I'm Caleb Brown.

The trade war between the US and China escalates again as the president lays out another round of tariffs this time on 200 billion dollars of Chinese goods that enter the United States.

Dan Eikinson directs trade policy studies at the Kido Institute.

He details how U.S. consumers, workers, and producers will take the hit.

As you understand it, what is the latest round of terrace between the United States and China

actually worth and where are we going to see them?

Well, this is all related to the same investigation

that the United States has been conducting against China's mercantilist

technology policies under Section 301 of the Trade Act of 1974.

So originally the USTR came up with a figure of $50 billion of Chinese imports to assess

with taxes with import tariffs.

And they decided that they would do it first just on 34 billion.

The other 16 billion is being vetted to make sure that I don't know that you know that the right

interests aren't adversely affected I'm not exactly sure what criteria they're

using but the Chinese retaliated the the tune of $34 billion,

assessing tariffs on US exports of $34 billion.

And Trump said that, look, if the Chinese retaliate,

that means they're not getting their act together and responding to our rightful measures.

And therefore we're going to hit them with more tariffs and we're going to apply them to 200 billion dollars worth of Chinese

exports to the United States and that's what they've just announced.

And this list spans what's called the harmonized tariff schedule.

It covers all sorts of products,

...