- US President Trump imposed fresh tariffs on Chinese imports worth US$ 200 bn.
- he tariffs will come in two steps: a 10% tariff by Sep. 24, 2018, a 25% tariff on Jan 1, 2019.
- China announced to retaliate, but the exact measures are not known yet.
- China will calibrate its fiscal policy to protect its growth targets. However, this is unlikely to involve a big bang policy package.