The world’s two biggest economies are at loggerheads.

The US is considering 25% tariffs on $200bn (£152bn) of Chinese goods, much higher than the 10% it previously indicated it might impose, reports say.

Meanwhile China has already retaliated, after US tariffs on $34bn of Chinese goods came into effect last month.

“If someone wants a trade war,” China’s commerce minister has said, “we will fight to the end.”

President Trump is bullish, threatening further tariffs and tweeting: “Trade wars are good, and easy to win.”

Video by Jilla Dastmalchi

Based on the BBC’s The Inquiry, a weekly programme that gets beyond the headlines.

This story is from The BBC News. To read the full story, please go to https://www.bbc.co.uk/news/world-asia-china-45036579.

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