Dive Brief:

• If China does not meet U.S. demands and retaliates against the recently announced tariffs on $50 billion worth of imports from China, the U.S. will strike back with additional tariffs on $200 billion worth of Chinese goods, according to a press release from the White House issued on Monday evening. In response, China on Tuesday morning issued a statement threatening "comprehensive measures that combine quantity and quality," according to a report from the Associated Press.

• Retail groups including the National Retail Federation and the Retail Industry Leaders Association are decrying the trade war between the two countries, which has been escalating for several months. Both argue that the tariffs will hurt consumers most.

• A study conducted earlier this year for the NRF and the Consumer Technology Association found that tariffs on $50 billion of Chinese imports could cut U.S. gross domestic product by almost $3 billion and potentially result in 134,000 lost jobs.

Dive Insight:

The U.S. under the Trump administration is increasingly shifting to a protectionist stance, a move that China and many other countries are quickly responding to with tariffs of their own meant to either cancel the benefits of such a strategy or harm industries vital to President Donald Trump's coalition.

China has been quick to snap back at tariff threats from the U.S., retaliating on Friday with tariffs of its own on $34 billion worth of products — the same value of Chinese goods taxed by the U.S. The country's vague warning Tuesday that it will consider "comprehensive measures" also suggests it may go beyond tariffs, Jake Parker, vice president for China operations of the U.S.-China Business Council, told the AP. He said that measures could potentially include delaying or denying licenses required by U.S. companies.

For retailers, the escalating trade war so far means a lot of uncertainty — but potentially high costs and added complexity — for global supply chains. Companies won't be the only ones to suffer under these rising trade tensions, the NRF and RILA have repeatedly warned over the last several months. 

"Higher prices for everyday essentials and lost jobs threaten to sap the energy out of the strong U.S. economy just as most Americans are starting to enjoy the benefits of historic tax reform," NRF CEO Matthew Shay said in a statement on Monday. "This reckless escalation is the latest reminder that Congress must step in and exert its authority on trade policy."