U.S. President Donald Trump said he would add more tariffs (taxes) on Chinese products. A tariff is a tax on things a country buys from another country. Trump wanted to make Chinese goods more expensive in the U.S.
Source: CNN.com
China did not like this. China said this plan is “a mistake on top of a mistake.” China also added its own tariffs on American goods. This situation is called a trade war.
Trump said China is not fair in business. He wants to change how the two countries trade. But China says the U.S. is trying to bully them. China says it is ready to fight back.
Both countries are now adding more tariffs. This makes business between the countries more difficult.
What does China want?
China wants to show it is strong. It wants to tell the world that it will not back down. China also wants other countries to see it as a good place for business.
China says:
- It is ready to compete.
- Its economy is strong.
- It will keep working with other countries.
Other countries are worried. Some countries buy and sell goods with both the U.S. and China. If the trade war gets worse, it may hurt the world economy.
In Asia, many countries are afraid. They don’t want to fight the U.S., but they are worried about higher prices and business problems.
What are the problems for China?
China’s economy is slowing down. The government is trying to get people to spend more money inside the country. But it is not easy.
China’s leaders say they will be strong. They don’t need to win votes like in other countries, so they can take more time to fix the problems.
No one knows for sure. Both the U.S. and China say they are ready to fight harder. If the fight continues, it may be bad for the world economy.
Many people hope the two countries can talk and find a solution.
Vocabulary for the Article
Tariff: A tax on goods coming into a country.
Explanation: A tariff is money that must be paid when a country buys things from another country.
Trade war: A fight between countries using tariffs.
Explanation: A trade war happens when countries try to hurt each other’s economy by adding high taxes on imports.
Goods: Things that are bought or sold.
Explanation: Goods are products like clothes, food, or cars that people or countries trade.
Import: To bring goods into a country.
Explanation: When a country buys things from another country, it is called importing.
Export: To send goods to another country.
Explanation: When a country sells its products to another country, it is called exporting.
Retaliate: To fight back.
Explanation: To retaliate means to do something bad back to someone who did something bad to you.
Punitive: Meant to punish.
Explanation: A punitive action is something done to punish another person or country.
Economy: The system of money and trade in a country.
Explanation: The economy is how money is made, used, and moved in a country.
Blackmail: To threaten someone to get what you want.
Explanation: Blackmail is when someone uses threats to force another person to do something.
Defiance: Strong refusal to follow orders.
Explanation: Defiance is when someone refuses to do what they are told to do.
Bullying: Being mean or unfair to others.
Explanation: Bullying is when a person or country tries to scare or hurt others.
Negotiate: To talk to reach an agreement.
Explanation: To negotiate means to discuss something until both sides agree.
Global: Around the world.
Explanation: Global means something that happens in many or all countries.
Crisis: A very difficult situation.
Explanation: A crisis is a big problem that needs a quick solution.
Opportunity: A good chance to do something.
Explanation: An opportunity is a time when something good can happen.
Resilience: The ability to recover or stay strong.
Explanation: Resilience means staying strong even when things are hard.
Leadership: The ability to lead people.
Explanation: Leadership is the action of guiding or managing a group.
Alliance: A partnership between countries.
Explanation: An alliance is when two or more countries agree to help each other.
Reporter: A person who writes or talks about the news.
Explanation: A reporter tells people what is happening in the world.
Press conference: A meeting where someone talks to the media.
Explanation: A press conference is when someone gives news and answers questions from reporters.
Read more easy English news articles to improve your English!
Snow White and Rachel Zegler: Why People Are Angry (Level 2)