The News
US President Donald Trump threatened to double existing tariffs on China to 20% from next week, piling further pressure on the country’s beleaguered economy.
Chinese stocks tanked after Beijing vowed to respond with “all necessary measures” against Trump’s plan. Still, the country’s economic troubles —including a sprawling property market crisis and the specter of deflation — may limit its response: Ahead of a meeting next week of the National People’s Congress, the Communist Party’s rubber-stamp legislature, leader Xi Jinping insisted the “fundamentals remain solid,” but warned “China’s economy still faces numerous difficulties and challenges.”
Along with higher tariffs on Chinese goods, a 25% levy on imports from Canada and Mexico will go into force from March 4. Trump has also reiterated threats to impose 25% tariffs on European Union exports, sparking warnings from Brussels that it would unleash a ”trade bazooka″ in response.
One country that has so far been spared in the trade war is the UK: The US president raised the possibility of a “real trade deal” with the country after talks with British Prime Minister Keir Starmer on Thursday.
