This week Trump’s administration proposed that instead of adding tariffs on new Chinese products, they could increase the rate at which they are charging the $200 billion worth of imports that got slapped with a fee last month. These include steel and aluminum (the very first tariffs that Trump announced), as well as food and other products. The proposed increase is from the current 10% tariff up to 25%. This measure comes as a result of the initial tariffs failing to pressure China the way the United States government expected them to.
China has condemned the proposal, calling it blackmail. Beijing has stated its readiness to retaliate in case the trade war with the United States exacerbates. China has been improving their relationship with Europe and other Asian countries lately, so they have a back-up plan in case they need to stop exporting goods to the United States in order to avoid losses. Moreover, the United States imports far more goods from China than the other way around, so in fact America needs trade with China more than China needs to trade with the United States.
There are currently reports that negotiations between China and the United States are ongoing, but hopes to avoid a damaging trade war are bleak.
