U.S.-China Trade Conflict Escalates with Notable Action from China

The U.S.-China trade war continues to escalate, with both countries imposing tariffs on each other's goods. Here's a rundown of the latest developments.

On August 26, President Trump announced that China will resume negotiations after last week's escalations. This announcement came early in the morning, indicating a potential breakthrough in the ongoing trade conflict. China's Foreign Minister, Wang Yi, has been actively engaged in talks around this time, suggesting he is a key figure in the diplomatic process.

The trade war has taken a toll on the global economy. The Dow Jones industrial average dropped more than 450 points in response to the tariff news and Trump's response. The Group of Seven summit in France is expected to discuss the global economy, with Trump calling for a special session.

The latest round of tariffs includes a 25 percent levy on automobiles and a 5 percent levy on auto parts imported to China, set to take hold on Dec. 15. If these tariffs are implemented, consumers' costs could go as high as $1,500 a year, according to JPMorgan researchers. For American families, about $1,000 in additional costs from all tariffs on Chinese goods annually is estimated after the 10 percent levies go into effect.

Trump has urged U.S. companies to stop doing business with China and bring their companies back to the USA. However, it's important to note that Trump does not have the authority to impose such a mandate on U.S. companies. Brian Riedl, a budget expert at the Manhattan Institute, has expressed bafflement over Trump's suggestion that he can order companies to stop working with China.

The Chinese Communist Party-run newspaper Global Times has stated that China's tariffs are a response to U.S. unilateralism and trade protectionism. The Global Times also hopes for a resolution of the trade conflict on the premise of mutual respect, equality, and trustworthiness.

Trump has directed criticism towards Federal Reserve Chair Jerome H. Powell for lack of monetary easing. This criticism is seen as evidence of Trump's mounting frustration over the economic policy.

The trade war between the U.S. and China has been on a collision course. China has imposed tariffs on $75 billion in American goods in response to Trump's escalating tariffs on imported Chinese goods. The Chinese import taxes will range from 5 to 10 percent and will take effect on Sept. 1 and Dec. 15.

As the trade war continues, many Americans are waiting for the other shoe to drop. The conflict has the potential to impact the global economy significantly, making it a topic of concern for policymakers and consumers alike.