American small and medium-size companies that rely on China are scrambling to adjust their business plans in response to the escalating trade war.Traderead more
Here are the products that stand to be the most affected by China's new tariffs on $75 billion worth of U.S. goods.Marketsread more
Trump said he will raise tariffs on $250 billion in Chinese goods to 30% and hike duties on another $300 billion in products to 15%.Politicsread more
China said on Saturday it strongly opposes Washington's decision to levy additional tariffs on $550 billion worth of Chinese goods and warned the United States of consequences...Politicsread more
The European Union will respond in kind if the U.S. imposes tariffs on France over digital tax plan, EU chief Donald Tusk told G-7.Technologyread more
Stocks dropped after Donald Trump ordered that U.S. manufacturers find alternatives to their operations in China.US Marketsread more
The final week of August could be highly volatile as markets fret over the economy and the latest developments in trade wars.Market Insiderread more
Federal Reserve Vice Chair Richard Clarida said Friday that the global economy has deteriorated in the past month.Marketsread more
The latest escalation in the trade war ups the odds the economy will fall into recession and that the Fed will aggressively cut rates.Market Insiderread more
"We don't need China and, frankly, would be far better off without them," Trump tweeted.Politicsread more
Recent trade friction between the two Asian powerhouses has morphed into a dispute with political implications that go far beyond the region.Asia Politicsread more
As trade war tensions continue to escalate, market watchers wonder if President Donald Trump has gone too far in an attempt to correct alleged unfair trading practices.
But former General Electric transportation CEO Bob Nardelli said the president is "a very reasonable individual."
"He's going to set an outrageous expectation," Nardelli said on "Fast Money " on Tuesday. "He's going to pull [the Chinese] to his side of the table. And I think when he sees some movement in a positive direction, then he'll come back over to a more reasonable decision point."
But investors were on edge Tuesday as the market fell, wiping out all of 2018's gains. On Monday, Trump threatened tariffs on $200 billion of Chinese goods. This is in addition to the $50 billion worth of tariffs already announced. China said it would counter with equivalent tariffs.
Trump's nontraditional negotiating style has long been chronicled. But Nardelli said that's precisely what makes it so effective: You never know if he's bluffing.
Nardelli said the market overreacted.
"We're assuming that we already have a trade war," he said. "And I think that's where the market was today. It was trading on rumors rather than on fact."
"The market reacts more violently on a rumor than they do on positive performance," Nardelli said.
In addition, Nardelli pointed out that the economy and earnings remain strong despite the potential tariffs.
"If you look at the recent CEO surveys, over half of them think the next 12 months is going to be better than the last 12," he said. "Over half of them think they're going to add more employees. Three-quarters of them said, 'Hey, we are where we are because of corporate tax rollback, repatriation and what we've seen in government regulations.' All, very, very positive."