China vs US: Who might blink next?published at 12:25 British Summer Time
Emily Atkinson
Live page editor
Image source, Getty ImagesNine days ago, a baseline tariff of 10% on almost all foreign imports to the US kicked in, joined five days later by custom duties on Donald Trump’s “worst offenders”.
For China, the planned 54% levies were effectively doubled overnight to 104% – the opening move in what became something like a staring match between the world’s biggest economies.
Beijing shot back, and now has a 125% tariff on US imports, against the current 145% rate on goods going the other way.
Washington appeared to blink on Friday with its exemptions for smartphones and other tech products from China.
But the US president struck a defiant tone on Sunday night, saying: “Nobody is getting off the hook for unfair trade balance.”
The message from China is it can ride this out. Who might blink next remains uncertain.
Today, both countries are focusing on trading partners in Asia.
President Xi Jinping is in Vietnam for the first leg of a South East Asia tour as he seeks to shore up ties there.
And in Washington, Trump is preparing to announce his plan for duties on semiconductors, which mostly come from Taiwan.
We’re ending our live coverage now, but will have the latest in our main news story. For more on what a US-China trade war could do to the world economy read our explainer.