Shumita Basu

Now Trump says he's instituting a 90-day pause for most countries while retaining a baseline tariff of 10 percent. The exception? China. Instead of pulling back, Trump doubled down, now saying China will face a 125 percent tariff, a jump up from where he was just two days ago when he promised tariffs of 104 percent. This comes after China, the world's second largest economy, didn't bend to Trump.

Instead of calling up the White House and offering concessions, China retaliated, increasing tariffs on all U.S. imports to 84 percent.

Instead of calling up the White House and offering concessions, China retaliated, increasing tariffs on all U.S. imports to 84 percent.

Instead of calling up the White House and offering concessions, China retaliated, increasing tariffs on all U.S. imports to 84 percent.

Lingling Wei is the chief China correspondent for The Wall Street Journal.

Lingling Wei is the chief China correspondent for The Wall Street Journal.

Lingling Wei is the chief China correspondent for The Wall Street Journal.

Part of that fortification, according to Wei, also has to do with Chinese export controls. In the same way that the U.S. has restricted China's access to high-tech, like semiconductors, China is employing a similar tactic for U.S. access for certain products.

Part of that fortification, according to Wei, also has to do with Chinese export controls. In the same way that the U.S. has restricted China's access to high-tech, like semiconductors, China is employing a similar tactic for U.S. access for certain products.

Part of that fortification, according to Wei, also has to do with Chinese export controls. In the same way that the U.S. has restricted China's access to high-tech, like semiconductors, China is employing a similar tactic for U.S. access for certain products.

China is also obstructing deals that could be beneficial to the United States. For example, a recent merger between Intel and an Israeli chipmaker fell through because Chinese authorities dragged their feet on approval. And China has a rule not dissimilar to a rule the United States has that allows it to restrict U.S.

China is also obstructing deals that could be beneficial to the United States. For example, a recent merger between Intel and an Israeli chipmaker fell through because Chinese authorities dragged their feet on approval. And China has a rule not dissimilar to a rule the United States has that allows it to restrict U.S.

China is also obstructing deals that could be beneficial to the United States. For example, a recent merger between Intel and an Israeli chipmaker fell through because Chinese authorities dragged their feet on approval. And China has a rule not dissimilar to a rule the United States has that allows it to restrict U.S.

companies from doing business there if it deems them harmful to China's national security interests.

companies from doing business there if it deems them harmful to China's national security interests.

companies from doing business there if it deems them harmful to China's national security interests.

With neither country seeming willing to give in, Wei says the world is watching the two largest economies effectively playing a game of chicken. Whichever has less tolerance for economic pain is the one we could see bend first.

With neither country seeming willing to give in, Wei says the world is watching the two largest economies effectively playing a game of chicken. Whichever has less tolerance for economic pain is the one we could see bend first.

With neither country seeming willing to give in, Wei says the world is watching the two largest economies effectively playing a game of chicken. Whichever has less tolerance for economic pain is the one we could see bend first.

The Department of Homeland Security and the IRS have reached an agreement to provide sensitive taxpayer information to federal immigration officials, according to recent court filings. That will allow the IRS to learn more about immigrants living in the U.S. without legal status.