President Trump announced on August 23 that he will raise tariffs by five percent on almost all goods imported from China, worth roughly $550 billion annually.

The Office of the U.S. Trade Representative said in a press release that on October 1, the U.S. will enact a five percent increase to the tariff rate on $250 billion of Chinese goods currently set at 25 percent. The rate on new tariffs set to take effect on September 1 and December 1 for the additional $300 billion of products will be raised to 15 percent from the planned 10 percent.

The announcement is in response to China’s decision to increase tariffs on $75 billion of U.S. goods, announced last week.