The prospect of a tit-for-tat trade war increased yesterday as Donald Trump threatened to introduce fresh tariffs of 10% on Chinese imports worth $200 bn (£150bn).
The threat followed the introduction of Chinese tariffs, which in turn followed a US levy of 25% on “659 US products worth $50 billion – including agricultural products, cars and marine products”, the BBC reports.
Trump said the measures were necessary “to encourage China to change its unfair practices, open its market to United States goods, and accept a more balanced trade relationship with the United States”.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
China has reacted angrily to the new threat, accusing the US of using “extreme pressure and extortionist behaviour”. It said it would “strike back hard”.
The rhetoric on both sides reignited fears of a full-blown trade war and sent shockwaves through stock markets.
However, says CNN, China “faces challenges in retaliating directly” due to the trade imbalance between the two countries.
China exports around $505bn worth of goods to the US each year, while just $130bn worth of goods travel in the opposite direction.
-
The six-seven meme that has taken over the worldIn the Spotlight With roots in rap and basketball, the phrase has young people obsessed, and it could be here to stay
-
Five takeaways from Plaid Cymru’s historic Caerphilly by-election winThe Explainer The ‘big beasts’ were ‘humbled’ but there was disappointment for second-placed Reform too
-
A journey through Trinidad’s wild heartThe Week Recommends Experience the island’s natural wonders, from watching baby turtles hatch to visiting an ancient bat cave
-
Will latest Russian sanctions finally break Putin’s resolve?Today's Big Question New restrictions have been described as a ‘punch to the gut of Moscow’s war economy’
-
China’s rare earth controlsThe Explainer Beijing has shocked Washington with export restrictions on minerals used in most electronics
-
The struggles of Aston Martin: burning cash not rubberIn the Spotlight The car manufacturer, famous for its association with the James Bond franchise, is ‘running out of road’
-
Why are beef prices rising? And how is politics involved?Today's Big Question Drought, tariffs and consumer demand all play a role
-
Labor: Federal unions struggle to survive TrumpFeature Trump moves to strip union rights from federal workers
-
New York court tosses Trump's $500M fraud fineSpeed Read A divided appeals court threw out a hefty penalty against President Trump for fraudulently inflating his wealth
-
Trump said to seek government stake in IntelSpeed Read The president and Intel CEO Lip-Bu Tan reportedly discussed the proposal at a recent meeting
-
Switzerland could experience unique economic problems from Trump's tariffsIn the Spotlight The current US tariff rate on Switzerland is among the highest in the world
