US President Trump threatens to double tariffs on China

The News

US President Donald Trump threatened increased tariffs on China from next week by doubling existing levies to 20%, piling further pressure on the country’s beleaguered economy.

Chinese stocks tanked after Beijing vowed to respond with “all necessary measures” against Trump’s plan. Still, the country’s economic troubles —including a sprawling property market crisis and the specter of deflation — may limit its response: Ahead of a meeting next week of the National People’s Congress, the Communist Party’s rubber-stamp legislature, leader Xi Jinping insisted the “fundamentals remain solid,” but warned “China’s economy still faces numerous difficulties and challenges.”

Along with higher tariffs on Chinese goods, a 25% levy on imports from Canada and Mexico will go into force from March 4. Trump has also reiterated threats to impose 25% tariffs on European Union exports, sparking warnings from Brussels that it would unleash a ”trade bazooka″ in response.

One country that has so far been spared in the trade war is the UK: The US president raised the possibility of a “real trade deal” with the country after talks with British Prime Minister Keir Starmer on Thursday.