China and the United States continue to dominate the news as we follow what’s going to happen with Trump’s proposed tariffs worth $50 billion. Even though the two countries are set to negotiate their trade relationship, earlier today China once again warned Trump not to move forward with his tariff plan as the People’s Republic is prepared to hit back with tariffs on its own, which would start a chain reaction around the globe and involve the world in a global trade war.
China does have leverage over the United States in terms of hosting the manufacturing of many US companies, such as Apple and Intel. It could also target other key American assets like automobiles, aircrafts, and more that it imports from the United States, and present Trump with a similar bill.
So while China continues to warn against tariffs, it is simultaneously preparing to fight back in case tariffs become a reality, and this could hurt a lot more than Trump anticipates. We are still awaiting a final confirmation of what the tariffs will include.
