China vowed retaliation on Tuesday if US president Donald Trump fires off a new round of tariffs targeting over half of what China exports to the US. Trump amped up the trade war hours earlier, saying 10% tariffs will be slapped on $200 billion of Chinese imports. And that they'd start next week, but it didn't stop there.
Trump also warned Beijing not to fire back or else he's got another round of tariffs on 267 billion worth of goods in the barrel.>> I think they wanna make a deal, they do wanna make a deal, that I can tell you, they wanna make a deal.>> What Trump called, Round 3, would effectively place tariffs on all of China's 500 billion plus US imports.
The increased pressure, apparently a tactic to get Beijing back to the negotiating table. But as Reuters' Tony Monroe reports from Beijing, China might decide to play it another way.>> China has said it has no choice but to retaliate, although it has yet to say what that retaliation will look like.
The latest round of tariffs 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 late on Monday, it does call in a question whether that round of talks will happen anytime soon.
>> Trump's 200 billion round of tariffs start at 10% but ramp up to 25% by the New Year. That would be after the holiday shopping season in the US. The new tariff targets leave out hot electronic items like smart watches and iPhones. But they probably wouldn't be saved from so-called Round 3.
On Tuesday, Alibaba co-founder, Jack Ma also said he thought a US-China trade war could last 20 years.