After Trump's new tariff threat, China may either have to blink or widen the trade war

DANDONG, China - President Donald Trump's latest threat of tariffs against China, on imports totaling roughly $200 billion, substantially raises the stakes for Beijing and could push the two countries' trade war beyond the tit-for-tat duties seen so far.

China's Commerce Ministry said Wednesday that the nation would act with "necessary counter-measures," but did not say that the government would retaliate in commensurate fashion, as it has promptly done in the past. The pause in brinkmanship reflects the quandary now facing Beijing.

The new U.S. proposed levies would be on top of 25 percent tariffs that the Trump administration has assessed on $50 billion of Chinese goods, $34 billion of which took effect last Friday. On that day, China fired back with tariffs of the same amount.

But Beijing cannot match the new proposed tariffs because