Trade-war winds: US-China trade tensions escalate
The stakes are getting higher in the trade tensions between the United States and China, setting the scene for further concerns from investors about an economic slowdown as the world’s two largest economies answer failed trade negotiations with tit-for-tat tariff increases.
On the heels of US President Donald Trump’s tariff jump from 10 percent to 25 percent on US$200 billion in imported goods on 10 May, China set plans to increase tariffs on US$60 billion in US goods on 1 June.
And, as the United States’ primary debt holder, in March China notably decreased its holdings of US debt by roughly US$20.5 billion, down to US$1.12 trillion — the lowest level in two years — likely as leverage prior to the recently-failed trade negotiations, according to CNBC.
“[US] trade with China is less than US$800 billion. For the individual companies involved in trade, this is problematic,” said Michelle Caruso-Cabrera, a CNBC contributor, on 16 May, “but [the Unit