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After 'major escalation' in US-China trade war, what happens next?

The trade war between the United States and China just got a lot bigger after both sides announced their broadest waves of tariffs yet.The latest exchange of fire means the two economic superpowers will soon have imposed tariffs on more than $360 billion of goods. And analysts say the battle is likely to get worse, even as China starts to run low on ways to retaliate.The new tariffs announced by Washington and Beijing this week "mark a major escalation of their conflict that will hit global economic growth," Louis Kuijs, head of Asia Economics at research firm Oxford Economics, said in a note.The Chinese government said late Tuesday that it would impose tariffs on US goods worth $60 billion following the Trump administration's announcement that it was hitting $200 billion worth of Chinese goods with new tariffs.The US tariffs start at a rate of 10%, before rising to 25% at the end of the year. They come into effect on September 24, and will apply to thousands of Chinese products, ranging from food seasonings and baseball gloves to network routers and industrial machinery parts.China's new tariffs will be levied at rates of 5% or 10%, depending on the product, from the same date, the Chinese government said.More than 5,000 US goods will be affected, including meat, nuts, alcoholic drinks, chemicals, clothes, machinery, furniture and auto parts.

 

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