Daily SumUp

President Donald Trump raised the tariff on Chinese imports to 125% on Wednesday, hours after China boosted the duty on American goods to 84% in an escalating battle that threatens to disrupt trade between the world’s two largest economies.

Citing a lack of respect, Trump set China apart from other countries. He said in a social media post that he is pausing his so-called “reciprocal tariffs” on many other trading partners because they had responded by reaching out for talks rather than retaliating.

The tit-for-tat hikes between the U.S. and China are the latest in an ongoing trade war that threatens to raise prices for consumers in America and derail China’s attempts to reinvigorate its sluggish economy. The response from the Chinese government signals its determination not to bend to Trump’s pressure, despite the risks.