In April 2018, president Trump announced plans to impose a 25% tariff on as many as 1300 Chinese exports, ranging from electronics to footwear.
In response, it only took China one day to unveil a list of American goods it plans on hitting with an identical 25% tariff, including key US exports such as cars and soybeans.
Interestingly, China is targeting $50billion worth of its adversary’s exports, a figure that is identical to the sum of Chinese exports targeted by the US.
Robert Carnell, chief economist at ING Asia Pacific, believes that it is almost certain that a US tariff on Chinese goods will be met with tit-for-tat retaliation and vice versa – as implied by China’s swift and mirror-like responses.
Subsequent threat of announcing “hit lists” worth $100billion or more presents a dilemma for China: It is running out of US imports to impose its tariffs on.