Last week the U.S. launched a trade war with China revealing a list of tariffs it could slap on $200 billion worth of Chinese goods. Today President Trump says he is willing to put tariffs on all $505 billion of Chinese goods imported into the U.S. China can retaliate beyond instituting tariffs on U.S. goods. China holds $1 trillion worth of U.S. treasury bonds. If it stops buying new bonds, or sells off its holdings, it would trigger a hike in yields putting pressure on America's debt load. Devaluing the yuan by 8 percent could make tariffs moot. The Chinese government could make it harder for U.S. companies to operate in China. Chinese President Xi Jinping. Last week, the U.S. fired the latest shot in its trade war with China, revealing a list of tariffs that it could slap on $200 billion worth of Chinese goods. While  China  has, to this point, been matching U.S. tariffs dollar-for-dollar – both countries instituted tariffs on $34-billion of items in