Donald Trump says he's going to tax steel and aluminium imports by 10 and 25 percent respectively (what's called a 'tariff'). People are saying it's the start of a 'trade war' with China... but China's not so fussed.
What it means: This term
is being thrown around a lot. It sounds really dramatic but all it actually means is America and China are tussling over who's the biggest power in the international business world, where your 'weapons' are things like tariffs and subsidies (doesn't really have the same ring to it as 'tanks and AK-47s', but oh well...)
Trump's latest move is supposed to protect American steel and aluminium producers by pushing up the price of metals from elsewhere. But China's perfectly happy to just sell to the rest of the world.
And when George Bush did pretty much the same thing in 2002, the only ones who were hurt were America, where 200,000 jobs were lost because American companies weren't competitive anymore, and because other countries implemented 'revenge' taxes on American goods to get their own back.
Here's a word-for-word quote from the Financial Times: "In the EU firing line are likely to be politically-sensitive products like Kentucky Bourbon and cheese from Wisconsin." Bourbon and cheese being fired across the Atlantic? Sounds like our kind of war.