The U.S. will likely emerge the winner in a "cold currency war" that is heating up, an expert said.Currenciesread more
These box office numbers do not include the cost of production or marketing costs. They also don't count the billions in merchandising that Disney has made over the last...Entertainmentread more
Tariffs are the only instrument left for addressing China's systematic and excessive surpluses on its U.S. trades, writes Michael Ivanovitch.US Economyread more
In its latest attempt to build market credibility, China on Monday launched the Science and Technology Innovation Board, or "STAR Market," on which 25 companies were listed.China Economyread more
When Cathy Hsu and Tony Hsieh wanted to build an English language app for Chinese children, they decided to follow Facebook and Google's lead.Start-upsread more
Stocks in Asia traded lower on Monday afternoon, as a Nasdaq-style technology board on the Shanghai Stock Exchange marked its debut.Asia Marketsread more
Instagram began tests that hide "like" counts on posts. That means influencers who market products on Instagram will have to rely on different metrics to show success.Technologyread more
Peter Neupert worked for Microsoft and Amazon-backed Drugstore.com, where he got to know Jeff Bezos. He now advises start-ups.Technologyread more
The firing of the tear gas was the latest confrontation between police and protesters who have taken to the streets for over a month to fight a proposed extradition bill and...China Politicsread more
Last week shows that oil prices are not the indicator for Middle East tensions they once were, and worries about global demand and growing U.S. production has changed that...Market Insiderread more
Facebook Vice President David Marcus is the face of the company's Libra digital currency, but the original driving force was a 26-year-old female corporate-development...Technologyread more
The latest escalation in a tariff fight between the U.S. and China has made it "very difficult" for the two economic giants to reach a trade deal that'll let President Donald Trump claim victory, experts said.
The U.S. just after midnight ET on Friday increased tariffs on $200 billion of Chinese goods to 25% from 10%. China responded immediately, saying it would take countermeasures against the U.S. The latest hike in levies came after Trump turned up the rhetorical heat against China starting Sunday and accused Beijing of reneging on parts of a developing agreement.
Representatives from both countries are meeting in Washington this week to discuss trade. After the latest developments, however, a resolution in the coming weeks is "very difficult" to imagine, said Steve Okun, a trade expert and senior advisor at consultancy McLarty Associates.
"For the U.S. to win, for Trump to declare victory, he has to show that there's a substantial change to what (China) does when it comes to intellectual property, when it comes to cyber theft, when it comes to forced technology transfers," Okun told CNBC's "Street Signs" just minutes before the latest tariff hike.
"Now, some of what, maybe much of what, the U.S. wants is in China's interests. But politically, it's very difficult for President Xi (Jinping) to be seen as giving into what the U.S. is demanding of him, " he added.
Okun is hardly the only expert predicting a deterioration in the relationship between the U.S. and China, which are the two largest economies in the world. Nick Marro, an analyst at consultancy the Economist Intelligence Unit, said Friday's tariff escalation would undo much of the "goodwill" and "positive momentum" built up in previous meetings between the two countries.
The U.S. and China had been negotiating for a trade deal over the last few months. Investors and analysts were hopeful that both sides would resolve their conflict by reaching some kind of deal. Even the White House was boosting hopes just a week ago that there might be an announcement for an agreement this week.
"I think the potential for a deal has gone down significantly, and the potential that talks might break down even further has risen," Marro told CNBC's "Capital Connection" on Friday after the U.S. increased tariffs.
"The fact that the tariff escalation was acted upon is going to do a lot to erase a lot of the goodwill and the positive momentum that we saw built up over the first quarter and it's going to be very difficult for both sides to really come back from that," he added.
The best case scenario is for both sides to continue talking, analysts said, but the escalation in trade conflict this week has also increased the probability that the U.S. and China may never reach a deal.
Stefan Legge, an economics researcher and lecturer at the University of St. Gallen in Switzerland, predicted that the trade war will drag on as long as both economies can handle the pressure.
"China and the US might well be deep enough into Thucydides' Trap so that the time is over for much cooperation anymore," Legge wrote in a note. "Thucydides' Trap" is a phrase used to describe a rivalry between an established power and a rising one that often ends in war.
Ratings agency Moody's is less pessimistic. Its managing director for credit strategy and standards, Michael Taylor, said he believes Washington and Beijing could still eventually reach a trade deal. But before that happens, heightened tensions between the two sides are major threats to the global economy, he wrote in a Friday note.
This week's tariffs hike "exacerbates the uncertainty in the global trading environment, further raises tensions between the US and China, negatively affects global sentiment and adds to risk aversion globally," said Taylor.
— CNBC's Jacob Pramuk anad Everett Rosenfeld contributed to this report.