The origin of the dispute goes back to President Trump’s election campaign and his promises to take a tougher line on trade, particularly with China. The president’s dramatic move to hike tariffs on $200 billion of Chinese imports last Friday, and China’s response with new tariffs on US imports, represented a surprise breakdown. The trade tensions also threaten a wider impact on international economic confidence at a time when nervousness already prevails. As the next presidential election comes into view, the risk of further trade aggression from Washington may grow. No one wins in a full-scale trade war, but given the building tensions between Washington and Beijing, this is precisely what is threatened.

Source: The Irish Times May 16, 2019 23:03 UTC