U.S. Secretary of State Mike Pompeo (L) and Chinese President Xi Jinping attend a meeting in the Great Hall of the People June 14, 2018 in Beijing, China.
The latest exchange of tariffs between the United States and China has increased the risk of a full-blown trade war that would have wide-ranging effects on the global economy. After the White House announced June 15 that the United States would move forward with 25 percent tariffs on $50 billion worth of Chinese imports, Beijing announced reciprocal tariffs on an equivalent amount of U.S. goods. The administration of U.S. President Donald Trump has indicated it is no longer willing to tolerate what it sees as unfair investment practices from Beijing, particularly as China's technological development begins to threaten U.S. supremacy . In addition to the tariffs, the United States is considering placing significant restrictions on Chinese investment into certain U.S. sectors. This is in addition to limiting the number of Chinese researchers and students allowed to come to the United States.
