Trade War On Tap? Tariffs On China And Mexico May Be More Than Expected

U.S. President Donald Trump has been promising big tariffs on imported goods from China, although the size of that tariff and whether it will trigger a trade war are currently up for debate. Imported goods from Mexico will also be taxed as he seeks to recover the money spent on building his infamous wall along the border. Economists are now debating just how big those tariffs will be, and some think they could be more than what is currently expected.

The big question now is whether the tariff will be big enough to halt trade between the U.S. and China. Alibaba founder Jack Ma has warned Trump that if trade between the two countries stops, war will start. One firm suggests that Trump will enact country-specific blanket tariffs, while another expects goods-specific tariffs, warning that a blanket tariff is sure to trigger an all-out trade war with China.

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