President Trump has abruptly escalated the U.S.-China trade war, saying that the United States would add a 10 percent tariff to a further $300 billion worth of Chinese imports starting September 1. Virtually every product China exports to the United States would now be taxed, ranging from everyday consumer products like children's toys and clothing, to tech products like iPhones and laptops. This would come on top of the current 25% tariffs on $250 billion worth of imports from China and would be certain to hit everyday American consumers. More on the tariffs' impact on U.S. consumers here.
Both the Chinese government and the stock markets reacted strongly, with the Foreign Ministry spokesperson saying that China will have to take strong necessary countermeasures, and the S&P slumping in its biggest weekly decline of the year.
As U.S. officials wrapped up the latest round of trade negotiations in Shanghai with no real sign of progress, the next round was announced for September in Washington. Prospects look bleak for a near-term truce, as Trump accused Beijing of stalling negotiations with the hope that he loses reelection in 2020 so they can restart talks with a new President.
Prepared by China-US Focus editorial teams in Hong Kong and New York, this weekly newsletter offers you snap shots of latest trends and developments emerging from China every week, while adding a dose of historical perspective.