"Despite the potential negative repercussions for both economies, the risk of a full-blown China-U.S. trade war, with tariffs and other trade sanctions being imposed by both sides, has risen significantly." Tensions temporarily eased on May 19 after China promised to "significantly increase" its purchases of U.S. farm, energy and other products. Treasury Secretary Steven Mnuchin said then that the U.S. tariffs were suspended and the trade war was "on hold." But Trump upended the truce last Tuesday by renewing his threat to impose 25 percent tariffs on $50 billion in Chinese high-tech goods. The negotiating process should be "based on the premise" of not fighting a "trade war," the statement said.

Source: ABC News June 04, 2018 03:45 UTC