Economics

Here's How a Trade War Between the U.S. and China Could Play Out

Will one side blink, or is a protracted struggle coming?
Ex-U.S. official: It’s hard to see ‘off ramp’ from conflict

Bloomberg’s Tom Mackenzie reports on the trade dispute between the U.S. and China.(Source: Bloomberg)

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By Jenny Leonard, Andrew Mayeda, and Reade Pickert

June 17, 2018 at 10:00 PM UTC

This article is for subscribers only.

President Donald Trump is betting Beijing will blink first in the showdown over tariffs. Such an outcome is far from assured -- and it could also take a while.

Trump said Friday the U.S. will slap duties on $50 billion in Chinese imports, with the first wave of tariffs to cover $34 billion of goods and take effect July 6. The president threatened to raise the total even higher if China retaliated, which it swiftly pledged to do. The Communist Party-run government countered with a list of goods slated for tariffs, including cars and farm products, that could cause political damage for Republicans.