China Thinks Trump Has Blinked First in Tariff War [Video]

President Donald Trump‘s move to exempt electronics from a sweeping U.S. tariff on China marks a “small step” back from an “erroneous practice,” Beijing said on Sunday, urging the administration to scrap its tariff regime altogether.

Trump has defended his tariff strategy as a way to restore U.S. manufacturing and push trading partners to eliminate what he calls unfair barriers to American goods.

Why It Matters

The administration’s tumultuous rollout of tariffs—or taxes paid by importers on foreign-made goods—has caused widespread confusion worldwide. The White House has imposed new duties on top U.S. trade partners—including Canada, Mexico and China—only to walk them back or raise them again in response to perceived slights.

After last week’s tariff broadside targeting about 180 countries and territories sent markets tumbling, Trump announced a 90-day reprieve for most of those affected. One notable exception was China: Tariffs on its goods were increased from 125 percentto 145 percent …