Trade Tensions: China and US in a Tariff Tug-of-War

The trade fight between China and the US has reached new heights. China has hit back with a 84% tax on US imports. This comes after the US President slapped extra taxes on Chinese goods. The two countries have been in a back-and-forth battle over trade. China has been firm in its stance against the US's moves. The trade spat has spread beyond just the US and China. The European Union has also joined in, announcing it will start taxing US imports. This is in response to the US's increased taxes on steel and aluminum imports from the EU. The EU has said it's ready to stop these taxes if the US agrees to a fair deal. China's response has been strong. The country's government has said the US's actions are wrong and hurt the global trading system. China has also added US companies to a list that bans them from doing business in China. This is on top of the 84% tax on US imports. The back-and-forth between the US and China has caused ups and downs in stock markets around the world. Some experts have called the situation ridiculous, given the size of the two economies. The US Treasury Secretary has downplayed China's moves, saying the US can handle the taxes. China has been preparing for the impact of the trade war. The country's export sector has been a bright spot in its economy. Trade between the US and China was worth roughly half a trillion dollars last year. China has said it has the will and tools to fight back if the US keeps up its trade restrictions. The trade war comes as China has been trying to boost its economy. The country has announced measures to increase domestic spending. This is in anticipation of the impact of the US's trade policies on its export-driven growth.