China-U.S. Tariff War May Be Hitting a Stalemate, Yet Greater Threats Remain | World News
China’s latest response escalates the situation, yet it remains within relatively foreseeable boundaries.
The most recent increase in tariffs follows a familiar pattern observed throughout the week, where Chinese reactions have closely mirrored those of Donald Trump.
Nevertheless, there is a significant distinction in this announcement.
China has remarked that any future increases are merely a “numbers game” and asserted that they will ignore any further escalations from Trump.
It seems they are signaling an end to what has felt like a continuous back-and-forth escalation.
They are correct, of course.
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Once tariffs surpass around 50%, trade essentially becomes impractical, rendering the numbers largely insignificant.
However, there are substantial uncertainties regarding whether this action successfully creates a stalemate.
Trump may choose to maintain the current status quo (potentially with a small increase in tariff numbers to appear in control) or he could escalate by implementing another type of non-tariff measure against China.
Read more: The more ‘nuclear’ option China could pick in trade war
Regardless of whether such measures are economic or political, it’s highly likely that China would seek to respond – and escalation beyond trade issues could be significantly more perilous geopolitically.
Even if there is a stalemate, the willingness of either party to negotiate remains uncertain.
A truce makes it slightly more probable, but the trust between the two nations is arguably at an all-time low, making this situation feel precarious.
