Trump escalates trade fight, drawing retaliation from Beijing

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Economic adviser contradicts Trump on China tariffs
01:35

Washington (CNN) President Donald Trump is digging in on his renewed China trade war, warning Monday that the fight “will only get worse” if Beijing retaliates — just as Chinese officials announced a fresh set of tariffs on $60 billion of US exports.

Trump’s saber-rattling came after his top economic adviser spent the weekend trying to defuse the trade war and demonstrate that trade negotiations between the two countries were proceeding. Those attempts to calm markets failed, with stocks falling sharply Monday morning after the mutual escalation.
 
“There will be nobody left in China to do business with. Very bad for China, very good for USA! But China has taken so advantage of the U.S. for so many years, that they are way ahead (Our Presidents did not do the job),” he wrote in one tweet. “Therefore, China should not retaliate-will only get worse!”
 
Soon after Trump’s tweets, China announced it will be raising tariffs on $60 billion worth of US goods beginning on June 1. On Friday, the US hiked tariffs on $200 billion worth of Chinese exports, prompting Beijing to vow “necessary countermeasures.”
 
The President’s tweets come a day after Larry Kudlow, the White House’s top economic adviser, told Fox News that there is a “strong possibility” Trump will meet with Chinese President Xi Jinping at the G20 economic summit in Japan next month, but noted that he expects China to retaliate against the US for its recent increase in tariffs on Chinese goods as Beijing has indicated it would.

Read the full story at CNN.com.