It looks like President Donald Trump is gearing up for a trade war. But in this kind of fight, history seems to indicate there are very few winners.
Economists are warning about hypothetical scenarios where Trump takes it too far, and other countries strike back, inevitably sending the global trade community down a spiraling path of retaliation. Roughly a month after Trump's initial announcement, we're starting to see the first signs.
On Tuesday, Trump released a list of Chinese imports he plans to target with his proposed tariffs. Less than 24 hours later, Beijing announced new tariffs on 106 U.S. products.
No one knows exactly what will unfold once the new tariffs go into effect. But if history is any indicator, we can make a pretty good guess.
There have been a number of trade battles in the last 80 years.
More recently, former President George W. Bush imposed steel tariffs in 2002. He was met with threats of retaliation from European trading partners. And soon after, he ended the tariffs.