These past weekend tariffs were raised again against China. China pulled out of negotiations to discuss a trade deal. Donald Trump has retaliated by raising tariffs from ten percent to 15 percent on Chinese goods.

The two sides are scheduled to meet again this month. No official date for their continuing negotiations has been announced. The trade war will continue until a trade deal is signed between the two countries.

Donald Trump took to Twitter to announce his stance on a trade deal with China

Trump has stated that he believes China is trying to delay the negotiations until after his presidency. China will not have to negotiate a new trade deal. They could get better terms with a different president according to Trump.

The United States economy is much stronger than China's.

The tariffs have challenged the Chinese economy. Donald Trump believes that they would have a difficult time waiting him out.

Donald Trump promises that the negotiations would be "MUCH TOUGHER" if they waited until his second term according to a story by The Hill.

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Donald Trump

There were no specifics on what tougher means in this scenario. It could mean that tariffs will increase even more than they have or fewer concessions for the Chinese during negotiations.

China for years has had favorable trade with the United States. Donald Trump is the president that has taken a stance against that trade scenario. He wants to bring manufacturing back to the United States and a trade deal with China would help that goal.

Recent stories in the media had stated that the United States economy is heading for a recession. The stock market is now in the longest bull run in history. The economy of the United States has historically had its ebbs and flows. United States' economy is strong and withstanding the tariff increases better than China.

China's Reaction to increased tariffs

China has challenged the tariffs with the World Trade Organization.

This is the third complaint against the United States since the trade war has begun. This is possibly a hint that the tariffs are hurting their economy more than the United States.

Over the weekend they announced that they are willing to negotiate again. They also announced that they would not seek retaliatory tariffs. China is giving the impression that they are ready to end the trade war.

Thomas Donahue is the chief executive officer of the United States Chamber of Commerce.

He believes that Donald Trump should not continue to raise the tariffs against China. Businesses in America are the entities that are suffering the most from the tariffs.

Donald Trump earlier renegotiated the NAFTA. This agreement named U.S.-Mexico-Canada (USCMA) is waiting for Congressional approval. This could help reduce the fear that investors now have about the economy and the ongoing trade war.

The stock market bounces up or down depending on the words of the negotiators for America and China. The stock market dropped abruptly when Donald Trump tweeted he was going to make it tougher for China if they wait. The last week when China said they were willing to get back to the negotiating table, the stock market rose.

The next steps for the United States and China

Trade wars are no wins. One country raised their tariffs and the other country raises theirs. This does not lead to any country claiming victory.

One country will start to loosen their tariffs and soon the trade war ends without a clear victory or any trade deal.

Both the United States and China seem to want to negotiate. Both sides are optimistic that they can gain an agreement. They were close before negotiations broke down earlier.

China has taken advantage of America for years with favorable trade status. Their economy has grown because of this arrangement. World trade should depend on supply and demand.

Every country in the world needs different materials that cannot be manufactured or mined in their own countries.

One country has plenty of one good, and they trade for a good they have a deficit. Trade will help economies across the world and the citizens will reap the benefits.

An ongoing trade war between the two largest economies could be devastating to the world economy. China and America buy goods from different nations. A bad economy in both these countries will hurt other economies. America and China need to sit down, negotiate and complete this trade deal to keep their economies flowing and help enrich the other countries of the world.

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