Tariff Tensions: Escalating Trade War Between U.S. and China

The U.S.-China trade conflict intensifies as President Trump threatens additional tariffs, dubbed 'blackmail' by China. Potential new levies could reach 104%. Economists question whether the U.S. gains from further hikes, while China considers retaliatory strategies like halting U.S. agricultural imports and expanding export controls.

On Tuesday, China criticized President Donald Trump's threat to impose an additional 50% tariff on its goods, labeling the move as 'blackmail.' The U.S. maintains it will proceed unless China withdraws its counter-tariffs.

The proposed tariffs could push the total new duties on Chinese imports to 104% this year, intensifying a trade war that has already triggered significant market losses. China's commerce ministry condemned the escalation, calling it a 'mistake on top of a mistake.'

With Trump's new tariffs, the average U.S. tariff on Chinese goods is set to rise dramatically. Economists question the strategy's effectiveness, while China considers limiting U.S. farming purchases, matching tariffs, and expanding export controls as potential responses.

(With inputs from agencies.)