First US President Trump engineered a trade crisis, now he has increased tariffs on thousands of China’s imports to the US market, escalating a trade war that endangers a fragile global economy struggling with weak growth and cheap credit. Trump argues that the US’s record trade deficit is economically damaging and has pledged to reduce it. In 2018, the US had a $419.3bn trade deficit with China and since May 10 is applying a 25% tariff on $200bn of Chinese goods. China retaliated in 2018 with tariffs worth $110bn, covering almost all of its imports from the US, and has threatened to go further. In November, the US had halted higher tariffs as the two sides agreed to negotiate. Talks appeared to be edging towards a deal until last week when, shortly before a scheduled US meeting with Chinese vice-premier Liu He, the US received an amended draft agreement that changed wording deemed unacceptable to the White House, Reuters reported. While any 150-page trade accord would need amendmen...
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