>> China wasting no time Tuesday, firing back in an escalating trade war with the United States. Beijing promised to slap tariffs on $60 billion worth of US goods starting next week. The import tax as high as 10% is in retaliation to a similar US tariff on $200 billion worth of Chinese-made goods that also kicks in next week.
Despite China's response, President Trump is not backing down.>> We are the piggy bank to the world, we've been ripped off by China. They rebuilt their country with tremendous amounts of money pouring out of the United States, and I've changed that around.>> Trump was hoping his tariffs would lead to productive talks.
But so far, they've just led to more tariffs. Reuters Greater China Bureau Chief, Tony Munroe.>> China has said it has no choice but to retaliate. The latest round of tarrifs complicates a possible next round of negotiations between high-level officials from the US and China. Last week, US Treasury Secretary Steven Mnuchin invited Vice Premier Liu He for a round of talks.
But with this action announced by President Trump, it does call into question whether that round of talks will happen anytime soon.>> But the full-on trade war failed to spook financial markets, why, because the initial tariffs of no more than 10% on either side were smaller than the 25% expected.
Wall Street rallied in relief, but that could be short-lived. Washington is already preparing a third round of tariffs to cover another $267 billion of goods, which would mean almost every product shipped to America from China would get hit. China's richest man, Alibaba founder Jack Ma, fears this trade war could go on for 20 years.