The China-US Trade War: What Is the Next
The Trump administration said on 15 June 2018 that it would impose a 25 percent tariff on USD 50 bn of Chinese products that are imported into the US. On 18 June, Mr Trump said that US may further identify another USD 200 bn worth of Chinese goods that could face 10 percent tariffs. China US Trade war has escalated. Neither side seems to prepare for a retreat anytime soon. During our weekly call at Bondcritic, we exchanged view on what is next for the US, China, and the world.
As far as we know, President Xi is not such a person who would retreat under pressure. It would be very interesting to further look at this event in details. In 2017, the US exported USD 130bn of goods and services to China and imported USD 500bn from China. So, it may appear that the US will have an advantage on this front.