The United States currently has 25% tariffs on $200 billion worth of Chinese goods. Now President Donald Trump has threatened to impose them on the remaining $300 billion in Chinese imports. But those tariffs add costs for U.S. consumers and businesses and disrupt supply chains. Whatever happens at Trump’s meeting with Chinese President Xi Jinping scheduled for Saturday, the Federal Reserve will be watching as it tries to decide where the economy is headed and what to do about interest rates.

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