China is not backing down from Trump's tariff war. What next?

The trade war between the US and China is escalating. Beijing has vowed to "fight to the end." This comes after President Trump threatened to nearly double tariffs on Chinese imports.

If implemented, these tariffs could reach 104%. This marks a significant escalation in tensions.

With a deadline approaching, many wonder who will back down first. Alfredo Montufar-Helu from The Conference Board warns that China won't remove tariffs easily. Doing so would make China appear weak and give the US more leverage.

Global markets have reacted negatively since last week. Trump's tariffs began affecting almost every country. Asian stocks dropped sharply but recovered slightly on Tuesday.

China has responded with its own levies of 34%. Trump warned of an additional 50% tariff if China does not relent. More tariffs are set to take effect on Wednesday, impacting Asian economies significantly.

Experts express concern over the rapid pace of these changes. Governments and businesses have little time to adapt to a shifting global economy.

In response to earlier tariffs, China imposed levies on US imports and launched investigations into US firms like Google. Now, it is preparing for further pain by weakening its currency, making exports cheaper.

State-linked enterprises are buying stocks to stabilize the market. China exports various goods to the US, including silk and smartphones.

Negotiations between the US and Japan have given some investors hope. However, the ongoing conflict between the US and China remains a major worry.

Mary Lovely from the Peterson Institute describes this as a struggle of endurance. She believes China may endure economic pain rather than yield to perceived aggression from the US.

China's economy is slowing down amid a property market crisis and rising unemployment. Consumers are spending less, while local governments struggle with investments and social safety nets.

Andrew Collier from Harvard Kennedy School notes that tariffs worsen these issues. A decline in exports could hurt China's revenue stream significantly.

Exports have historically driven China's growth, though it seeks diversification through tech manufacturing and domestic consumption. Collier predicts that tariffs will soon impact China's economy more severely as President Xi faces tough choices ahead.