James W. Harpel Professor of Capital Formation and Growth
Last month, U.S. President Donald Trump enacted steel and aluminum tariffs aimed squarely at China. On April 2, China retaliated with tariffs on 128 American products. Trump then announced 25% tariffs on another 1,300 Chinese products, representing some $50 billion of exports. In response, China threatened 25% tariffs on 106 U.S. exports (including soybeans, cars, and airplanes), to go into effect whenever the U.S. tariffs do. Yes, if these measures go into effect, it will amount to a trade war – one that the United States is not likely to win.
Frankel, Jeffrey A. "Why China Won't Yield to Trump." Nikkei Asian Review, April 18, 2018.