Economics
Here's How a Trade War Between the U.S. and China Could Get Ugly
- First round of tit-for-tat moves to have relatively low impact
- The longer the spat drags on, the harder it is to wind down
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The first shot of the U.S.-China trade war went off without much of a reaction from investors. The calm may be short lived.
For months, financial markets have been bracing for President Donald Trump to follow through with threats of tariffs against China. So it came as little surprise when the U.S. implemented duties on $34 billion in Chinese imports on Friday, as planned, and Beijing retaliated proportionately.