This post was originally published on The Economic Times
WASHINGTON: President Donald Trump‘s rapidly escalating trade war with China has resulted in eye-watering tariffs on products exchanged between the countries and scrambled prospects for many global businesses that depend on the trade. And there is no end in sight.
The Trump administration has been waiting for the Chinese leader, Xi Jinping, to call Trump personally, but Beijing appears wary of putting Xi in an unpredictable and potentially embarrassing situation with the U.S. president.
With the two governments at an impasse, businesses that rely on sourcing products from China — varying from hardware stores to toymakers — have been thrown into turmoil. The triple-digit tariff rates have forced many to halt shipments entirely.
Trump officials have argued that the status quo with China on trade is not sustainable. Trump has rapidly ratcheted up tariffs on Chinese products, from 54% on April 2 to 145% just one week later. The Chinese government has argued that the actions are unfair and closely matched his moves, raising its tariffs on American goods to 125% on Friday.
But Friday night, the administration created a significant carve-out to
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