In the newest addition to the trade war between two of the world’s largest economies, the foreign minister of China asserted that Beijing will respond firmly to U.S. threats of increasing tariffs on Tuesday after President Trump states that another round of tariffs might occur if no lasting agreement was achieved in the following G20 summit this month.
According to The Trump Administration, the imposition of tariffs on at least $300 billion in Chinese goods will be contingent on what occurs in the meeting between both leaders in Osaka this June. Despite President Trump’s claims, the Chinese government has not confirmed President Xi Jinping at the summit.
Investors worry that President Trump’s inflammatory threats might be met with a sweeping Chinese retaliation that might include placing U.S. companies on a blacklist or banning exports of rare earth metals (used primarily for the production of computer chips, batteries, and cell phones) to the United States. Chinese officials stated that they do not wish to prolongate the trade war but will retaliate accordingly if the United States extends.
