US ↔ China

The trade tensions between US and China began when US President Donald Trump came into office.

As part of his election pledge to boost US’ economic position, Trump has called out China countless times for what he deems as “unprecedented and unfair trade practices” which he believes are one of the main causes of what he views as US’ stagnant economic growth.

Frictions between both economic powerhouses escalated further when Trump announced his plans to impose heavy trade tariffs on steel and aluminium imports, excluding Argentina, Australia, Brazil, Canada, Mexico, and the European Union.

Based on reports by Reuters, China had retaliated by increasing tariffs by up to 25 per cent to 128 US products which saw Washington announcing a proposed 25 per cent tariffs on 1,300 industrial technology, transport, and medical products from China worth US$50 billion.

In response, China had once again threatened to impose a 25 per cent additional tariffs on 106 US’ goods worth US$50 billion including signature products such as soybeans, cotton, planes, cars, beef, tobacco and whiskey.’

US had then, threatened another round of tariffs on US$200 billion of China’s goods if China strikes back for the second time.

Since then, leaders and representatives of both countries have met several times to establish an agreement that best fit both countries.

However, no deal has been struck between the two countries until today.

In the latest update on the friction between the two, US now threatens to impose a another trade tariffs on US$200 billion of Chinese goods this month.

Two of the world’s largest and most influential economies now looked locked in an intensifying trade war, with no resolution in sight.