A trade war between the two largest economies is looming over the world. After Donald Trump made the first step, the Chinese authorities retaliated with plans to introduce 25-percent tariffs on 106 American imported goods.
For now these are only plans and the date when Beijing’s tariffs will be implemented depends when Washington will place its tariffs. Impartial assessment of the situation shows that China will suffer more. The Chinese authorities clearly understand it but are not going to give way easily. Wang Shouwen, a vice minister of Commerce, said: “China does not want a trade war. But if someone insists on fighting a trade war, we will be there.” US Commerce Secretary Wilbur Ross stated that the Chinese tariffs do not represent a threat to the United States. China's tariffs "amount to about three-tenths of a percent of our GDP. So, it's hardly a life-threatening activity," Ross pointed out.
The American official noted that Beijing’s measures are "relatively proportionate to the tariffs we put on based on the intellectual property." In other words, when the US does not depend on the Chinese goods, it can be made great again. For now, other countries monitor the situation hoping that the tension will not escalate into a real conflict.
