Global Geopolitical Series: All talks point to worsening Sino-American trade dispute

All talks from Beijing and Washington point to the steady deterioration of trade dispute between two world’s biggest trading partners and biggest economies, especially since the Sino-American trade negotiations broke down last month leading to both sides resorting to tariff war. The U.S. has increased tariffs on Chinese goods worth $200 billion from 10 percent to 25 percent, while China imposed fresh tariffs on $60 billion U.S. goods and threatening actions against U.S. firms operating in China, as well as U.S. agricultural products.

This week, after news came out that the United States is considering $2 billion arms sales to Taiwan - a country which claims sovereignty but China considers it as a part of it, China came with firing warning that ignoring China’s strategic interests would be a detrimental mistake by the United States. China’s commerce ministry came out warning that if the United States escalate the trade tensions, China would come out with necessary countermeasures and the country to fight till the very end should the United States choose the escalation path.

While China toughened up the rhetoric, President Trump is prepared with his own set of threats. While in Europe to commemorate the 75th Anniversary of the D-day, crucial to the victory of the allied forces in the World War II, President Trump warned that the U.S. stands ready to up the tariff war with fresh 25 percent charge on the next tranche of Chinese goods worth $300 billion.

Insiders, familiar with the trade negotiations suggest that it is only a matter of time before the tariff war moves to the next level.