Economics
Trade War Reality Sets In as U.S and China Stick to Their Guns
- U.S. and China exchange new tariffs on Monday; stocks sink
- Beijing calls off talks, says won’t negotiate under threat
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The world’s two biggest economies are digging in for what could be a long and bruising trade war, testing the resilience of the strongest global upswing in years.
The Trump administration just after midnight on Monday slapped tariffs on $200 billion in Chinese goods. China responded with duties of its own on $60 billion in U.S. products. The Chinese government also called off planned talks with U.S. officials as the consensus grows in Beijing that substantive discussions will only be possible after U.S. midterm elections in November, according to people familiar with the matter.