U.S.-China Trade Crisis Heats Up

CHINA US TARIFFS
Chinese-made teddy bears carrying American hit movie Avengers characters are displayed inside an arcade game at a shopping mall in Beijing, Wednesday, July 11, 2018. China's government has criticized the latest U.S. threat of a tariff hike as "totally unacceptable" and vowed to retaliate in their escalating trade war. The Commerce Ministry on Wednesday gave no details, but Beijing responded to last week's U.S. tariff hike on $34 billion of imports from China by increasing its own duties on the same amount of American goods. AP Photo
CHINA US TARIFFS
Chinese-made teddy bears carrying American hit movie Avengers characters are displayed inside an arcade game at a shopping mall in Beijing, Wednesday, July 11, 2018. China's government has criticized the latest U.S. threat of a tariff hike as "totally unacceptable" and vowed to retaliate in their escalating trade war. The Commerce Ministry on Wednesday gave no details, but Beijing responded to last week's U.S. tariff hike on $34 billion of imports from China by increasing its own duties on the same amount of American goods. AP Photo

U.S.-China Trade Crisis Heats Up

President Donald Trump's decision to impose tariffs on Chinese goods has contributed to the ongoing trade war between U.S. and China. On Friday, the U.S. announced $200 billion tariffs on Chinese imports, as an effort to pay down the accumulated debt of $21 trillion and to protect the intellectual property of U.S. businesses. In response, China proposed tariffs of $60 billion on US products. US economic adviser Larry Kudlow dismissed China’s actions claiming it was “a weak response to our $200.” The Chinese government stated that it would endure the conflict and sacrifice short-term interests if it meant long term gain. Over the weekend, Trump claimed to have the upper hand on China in regards to the conflict. To discuss future U.S.-China relations, we're joined by Phil Levy, senior fellow on the global economy at the Chicago Council on Global Affairs.