U.S.-China Trade War Escalation

SOURCE www.npr.org
China has imposed a 34% tariff on all U.S. imports in response to new U.S. tariffs, escalating the trade war between the two countries. The Chinese retaliation makes a near-term deal to end the trade war highly unlikely.

Key Points

  • China imposes 34% tariff on all U.S. imports
  • China adds U.S. entities to export control list and blacklists others
  • China imposes export controls on seven types of rare earth minerals
  • U.S.-China trade war escalates with retaliatory measures

Pros

  • China is taking action to protect its national security and interests
  • China is responding to what it views as unilateral bullying by the United States

Cons

  • Escalation of trade tensions between the two largest economies in the world
  • Potential negative impact on the global economy and supply chains