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Will China and the US head into a full-blown trade war? | Trade War

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The US and China’s tit-for-tat tariffs are ratcheting up economic tensions between the two nations.

They were seen as a restrained response to Donald Trump’s tariffs against China.

Beijing’s retaliatory duties on nearly $14bn in United States imports have come into effect.

That’s after Donald Trump recently fired the opening salvo in a trade dispute.

Trump has slapped an additional 10 percent tariff on hundreds of billions of dollars of Chinese imports.

But, despite the tit-for-tat measures, tensions between the world’s two largest economies appear to be restrained – for now – leaving room for negotiations.

Trump wants to shut down the United States Agency for International Development, (USAID) the US’s main foreign aid agency.

And he’s halted aid to South Africa. Is aid being weaponised?

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