Stepping up heat on China, US President Donald Trump on Tuesday threatened to impose 10 per cent tariff on $200 billion worth of Chinese goods unless Beijing stops its ‘unfair trade practices’.
“If China increases its tariffs yet again, we will meet that action by pursuing additional tariffs on another $200 billion of goods. The trade relationship between the US and China must be much more equitable,” Trump said in a statement.
China promptly hit back saying the US is making allegations to cover up its unilateral protectionist policies.
The White House, however, appeared unfazed, claiming China had much more to lose than the US in the trade war.
Global stock markets slumped on Tuesday after Trump threatened to escalate the trade war. Trump’s latest move follows tariffs applied last week on $50 billion in Chinese imports to the US.