more-inWhether last week’s punitive tariffs threat by the U.S. on Chinese imports will explode in a full-blown trade war between the two countries is an open question. In a torrent of tit-for-tat tariffs announced last week, China retaliated with increased duties on 128 U.S. (mostly) farm and food products worth $3 billion. After all, manufacturing jobs in America’s Rust Belt states would be hit by the latest U.S. tariffs. Given growing opposition, even among Republicans, against the extreme economic nationalists in their party, the political fallout from the contentious tariffs could be huge for U.S. President Donald Trump in the November mid-term Congressional elections. Equally, China’s largely exports-driven economy may not have enough elbow room to withstand further escalation of ongoing trade battles.

Source: The Hindu April 09, 2018 18:45 UTC