New tariffs on $200 billion worth of Chinese goods went into effect Monday, escalating President Trump's trade war with China. Wheels are one of the items on the list. That includes the custom wheels made by Fullerton-based company Ultra Wheel.

President Fred Dobler said the new 10 percent tariff will force the company to raise its prices and potentially lay off workers. He has even told U.S. trade officials that if the tariff increases to 25 percent — which could happen if the two countries don't reach an agreement by next year — Ultra Wheel could go out of business.