What Happened: U.S. President Donald Trump announced via Twitter on Aug. 1 that he will impose an additional 10 percent tariff on the remaining $300 billion worth of Chinese imports starting Sept. 1. Trump said China had not followed through on its promises to increase agricultural purchases, among others.
Why It Matters: The surprise tariff announcement comes just after the United States and China concluded their latest round of trade talks in Shanghai, which yielded little tangible progress. Trump's decision to impose new tariffs further raises the risk of Chinese retaliatory measures, such as export restrictions on rare earth metals.
Background: China and the United States agreed to a tariff cease-fire during the G-20 summit and although negotiations this week brought little progress on contentious issues, both sides agreed to hold another round of high-level talks in September.