A new Cold War?

US-China confrontation may spill over from trade

The trade war between the US and China has entered a new phase, one in which the earlier hopes of a compromise are rapidly receding. After coming close to an agreement, the US side accused the Chinese side of reneging on large parts of the agreed-upon deal. As a consequence, President Donald Trump’s threatened escalation of tariffs on Chinese goods has kicked in. Beijing has retaliated in kind, saying it would raise tariffs on nearly $60 billion worth of US exports to China, including alcohol, apparel, and liquefied natural gas. The Trump administration had already increased tariffs to 25 per