hero image

President Donald Trump has moved closer to an all-out trade war with China after unveiling intent to impose a 10% tariff on an additional $200 billion worth of Chinese goods if Beijing does not relinquish its intentions to respond back against US duties on imports that were announced last week.

In a statement, President Trump said he asked the US trade officials to identify a further $200 billion in Chinese goods to be a subject to 10% tariff. Trump was also prepared to impose tariffs on an additional $200 billion beyond. With the world’s two largest economies on a brink of a full-fledged confrontation, Trump said he was pushing forward with new disciplinary measures over Beijing’s deplorable move to raise its own tariffs.

The Chinese commerce ministry declared that the threat was blackmail and warned for strong counter-measures, while the Chinese foreign ministry said that the country (US) has once again ignited a trade war. Many analysts have predicted that the trade war between these two countries will result in an all-out trade war that can destabilize the global economy.

Last week, Donald Trump announced a 25% tariff on %50 billion worth of Chinese goods and imports, thereby prompting Beijing to do the same with American imported goods. Trump said he already warned about the additional tariffs if China ever decided to hit back with tit-for-tat duties on American goods.

Trump says that his relationship with President Xi Jinping of China has never been better and that the two are working to resolve many issues. But, as stated by Trump, China will no longer take advantage of trade with the US and many other countries in the world.

Trump moved forward with these measures after many months of sometimes-frantic shuttle diplomacy in which the Chinese offer to buy more American goods failed to relieve his concerns over the escalating trade imbalance and China’s driving industrial development policies.