Beijing to decide whether to retaliate over Trump’s planned hike in steel, aluminum tariffs
Chinese leaders will decide whether President Donald Trump’s planned hike in steel and aluminum tariffs justifies starting a fight that might disrupt access to one of China’s biggest markets, AP reported. Beijing has threatened retaliation if Trump raised trade barriers, but had no immediate reaction on Friday to his announcement. Asian stock markets fell amid talk of a “trade war.” Authorities in Beijing will consider the need to back up threats with action against the risk of disrupting US market access for smartphones and other exports that matter more to their economy than metals. Economist Louis Kuijs of Oxford Economics thinks China will definitely respond because “it doesn’t want to be seen as weak.” However, the answer “will be relatively restrained,” according to the economist.