U.S.-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 President Donald Trump’s tariff jump from 10 percent to 25 percent on $200 billion in imported goods on May 10, China set plans to increase tariffs on $60 billion in U.S. goods on June 1. And, as the United States’ primary debt holder, in March China notably decreased its holdings of U.S. debt by roughly $20.5 billion, down to $1.12 trillion — the lowest level in two years.
But the nature of trade has evolved, with technological innovation and advancements in artificial intelligence. On May 15, Trump issued an executive order granting the Department of Commerce wide authority to ban not only Huawei but any Chinese information and communications technology company from conduct