The 25 percent tariff the president is proposing is almost identical to a move in his first term. Economists and foreign governments know what will come next.

President Donald Trump on Monday removed the exceptions and exemptions from his 2018 tariffs on steel, meaning that all steel imports will be taxed at a minimum of 25%. Trump also hiked his 2018 aluminum tariffs to 25% from 10%.

China’s retaliatory tariffs against the U.S. came into effect early Monday but President Donald Trump paved the way for more levies.