UPDATE: Trump Adds Protective Tariffs on $50 Billion in Chinese Goods

President Donald Trump is adding a 25% tariff on at least $50 billion in Chinese goods in a bid to protect intellectual property and force the country to lower its own import taxes on American products.

Trump reiterates that, if China retaliates, he may expand the punitive U.S. import taxes by another $100 billion. He has specifically cautioned China not to add non-tariff barriers for U.S. companies doing business in China.

The White House’s initial list of targets covers 818 products worth $34 billion. Tariffs on those items are to begin July 6. An additional 284 items representing $16 billion in value are still being evaluated. A decision on those goods will come later and may carry even higher tariffs.

Beijing says it will retaliate with its own list of new taxes on 659 imports from the U.S. worth $34 billion. Those items range from aircraft and vehicles to food and agricultural products, including soybeans—a $9 billion market for U.S. farmers. China is canceling plans announced last month to lower import duties on foreign cars to 15% from 25%. That proposal was floated in hopes of averting the U.S. tariffs.

China also is preparing a second round of protective tariffs on $16 billion worth of U.S. goods ranging from chemicals to medical devices.

The escalation brings the world much closer to an all-out trade war, a possibility Trump has claimed he relishes and is confident of “winning.” Two weeks ago Trump also imposed import taxes of 25% on steel and 10% on aluminum from Canada, Europe and Mexico. Last week he escalated his threat to slap a 25% import tax on all foreign-made cars.