The next escalation in the U.S.-China trade war might be around the corner.
At midnight Thursday a public comment period ends for President Donald Trump's next wave of tariffs.
He's expected to pull the trigger on another $200 billion dollars worth of goods from China as soon as Friday.
A way out doesn't seem likely soon.
On Wednesday Trump said he thinks the U.S. has done well in talks with Beijing - but quote, "we're not prepared to make the deal that they'd like to make." Hours later, Beijing warned it would again retaliate if Trump fires off the new tariffs.
(SOUNDBITE) (English) CHIEF ECONOMIST, WORLD FIRST, JEREMY THOMSON-COOK, SAYING: "China still has a lot more power obviously over this.
They have the ability to completely blockade the imports of soybeans for example we have seen obviously that they have put a huge tariff upon them but a blockade for example are moving their supply to somewhere like Argentina may bring the U.S. back to the table.
But for now there's a lot more shoes to drop on this on this story." However White House sources tell Reuters the Trump administration seems confident its winning the trade war.
It sees a weakened Chinese economy- and stock markets sinking on news of the tariffs.
But Beijing sees an opportunity in the U.S. midterms. (SOUNDBITE) (ENGLISH) REUTERS REPORTER MICHAEL MARTINA SAYING: "One thing that we hear Chinese academics or advisors to the government repeatedly voice is that they think that perhaps President Trump's standing in the U.S. could impact his China trade agenda.
Uh, certainly Trump faces midterm elections back home in November, and the idea is that if he takes political damage for that, uh perhaps that he won't be able to push through the the China trade policies that China's so worried about." Washington has made a number of demands on Beijing from cutting subsidies for its high-tech industry to slashing a $375 billion dollar trade gap.
China accuses the Trump White House of hardline tactics and has called for more talks.