USA vs China: After shocking tariffs, growing trade war, what to expect from Donald Trump, Xi Jinping next?

Xi Jinping-led China announced Friday that it will raise tariffs on U.S. goods from 84 per cent to 125 per cent — the latest salvo in an escalating trade war between the world’s two largest economies that has rattled markets and raised fears of a global slowdown.

While U.S. President Donald Trump paused import taxes this week for other countries, he raised tariffs on China and they now total 145 per cent. China has denounced the policy as “economic bullying” and promised countermeasures. The new tariffs begin on Saturday.

Experts have claimed that there are still more options if U.S. President Donald Trump keeps upping the ante. Experts have also claimed that China's yuan could weaken, making its exports more affordable, but there are limits to how far Beijing is willing to depreciate the currency, which would weaken investment returns and strain markets further, as per a report.

Will there be talks between US and China?

Experts are watching for signs of whether negotiations might happen. Chinese officials have repeatedly said they are open to talks, but it's unclear whether Beijing is open to making any concessions, AP reported.

"The door is open for talks," said Commerce Ministry spokesperson He Yongqian, "but dialogue must be conducted on an equal footing and on the basis of mutual respect; and China will fight to the end," Yongqian said.

President Xi managed to limit the damage from Trump's first term, when he launched tariff hikes and other sanctions to try to win more favorable trade terms for U.S. products. As head of the ruling Communist Party, he has won praise from Trump himself for his stance as a strongman and has plenty of experience in political maneuvering, as per the AP report.

“China is unlikely to change its strategy: stand firm, absorb pressure, and let Trump overplay his hand” writes Daniel Russel, vice president of international security and diplomacy at the New York-based Asia Society Policy Institute. “Beijing believes Trump sees concessions as a weakness, so giving ground only invites more pressure.”

FAQs

Q1. Who is President of USA?
A1. President of USA is Donald Trump.

Q2. Who is President of China?
A2. Xi Jinping is the President of China.