As we know, the trade conflict has escalated between US and China and another battle front has opened with Mexico. Yesterday we heard some softer tones from China and Mexico, but today the tones have increased again. Donald Trump started the ping-pong first:

Donald Trump’s Comments

• Mexico has made progress in tariff talks but needs to do more
• We’ve told Mexico the tariffs will go on if progress is not made
• Mexico has to ‘step up to the plate’; progress being made
• Talks are ongoing with China on trade
• Tariffs on China could be raised by another $300 billion if necessary
• China wants to make a deal, Mexico wants to make a deal badly

Comments by China’s foreign ministry

• China says will have to adopt necessary countermeasures if US decides to escalate trade tensions
• Future direction of trade talks depends on the US
• Trade war will hurt US economy, employment
• US claims of China taking advantage in bilateral trade are groundless
• Says will fight to the end if US decides to escalate trade tensions
• US’s large-scale measures on Huawei are “astonishing”
• US changed position in talks, so they shouldn’t accuse China

Trump said that trade talks are ongoing with China, but with these tones I don’t think they will get anywhere. Actually, I think that trade talks have ended for the time being, as China has commented.

If the US goes ahead with another $300 billion in tariffs on China, then there’s no way back. Unless China bends over completely, which they might do as the Chinese economy has slowed considerably.