China is vowing to retaliate after President Joe Biden announced new tariffs on $18 billion worth of Chinese goods. These include a 100% tariff on electric vehicle imports, 50% on solar cells, and 25% on certain steel and aluminum imports. Yahoo Finance Executive Editor Brian Sozzi joins The Morning Brief to discuss his exclusive interview with the president and how China is responding to the news.

"It's unclear precisely how China will react," Sozzi explains, saying that China may go tit-for-tat or decide to take their action even further. "This might just be the opening start here for President Biden. Do they take this even further in an election year when he and his administration want to highlight what they're doing in terms of manufacturing and bringing back jobs to the country, whether it's in semiconductors or other important industries?"

Biden told Sozzi that he believes China may be artificially propping up its economy, explaining that "China is fundamentally underwriting their entire industries." The president added that these tariffs are about "being fair."

In light of the new tariffs and potential retaliation from China, Sozzi says, "This economy, by all indications, continues to be growing...The world is not ending."

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Melanie Riehl