Things are heating up between the U.S. and China. President Trump warned he will add a big 50% tax on Chinese products if China doesn’t back off by April 8. China had just added a 34% tax on U.S. goods, and that did not sit well with Trump. He even said he will stop all trade talks if they don’t change their minds.
China does not feel scared. They called Trump’s warning a “blackmail” and said they’re ready to fight back. Last week, they hit the U.S. with big taxes of their own. Their leaders are saying America is being a bully and breaking the rules. No one’s backing down, and things are getting intense.
Trump is really fired up. He says China’s in trouble and can’t win this. His team believes the U.S. holds the power because we buy way more from China than they buy from us. Meanwhile, the stock market is dropping fast, but Trump says it is worth it to protect American jobs. With both countries digging in, this trade war might just be getting started.