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
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
The world's second biggest economy is past a point where it cannot ignore its enormous debt anymore, according to an analyst.China Economyread 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
As demand for lab monkeys continues to rise, U.S. scientists are reporting delays in research projects because they can't obtain enough animals, according to the National...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
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
Stocks are going to have to fall a lot more before President Donald Trump eases off his tough rhetoric on U.S.-China trade, said Ed Mills, Washington policy analyst at Raymond James.
Mills wrote in a note to clients Tuesday that equities would have to experience a correction of at least 10% "before Trump starts talking up the prospects of a G20-timed deal." Trump and his Chinese counterpart, Xi Jinping, are expected to meet at next month's G-20 summit.
"In the meantime, we expect threats of escalation by both sides in an effort to build negotiating leverage ahead of the G20 meetings," Mills said. "While there is some hope for continued talks, longer-term expectations are being downgraded on the ability to strike a meaningful deal unless political calculations see a significant directional change over the next couple months."
Trade tensions between China and the U.S. reemerged last week after Trump hiked tariffs on $200 billion worth of Chinese imports. The president also raised the possibility of slapping tariffs on an additional $325 billion worth of Chinese products.
Stocks have fallen sharply since Trump first threatened to raise levies on Chinese goods on May 5. The and Dow Jones Industrial Average are both down more than 4% in that time period while the Nasdaq Composite has shed 6.3%.
Trump's move led China to retaliate by announcing higher tariffs on $60 billion worth of U.S. products on Monday. Those tariffs, China said, will take effect on June 1. That announcement sent the Dow and S&P 500 to their worst daily performance since Jan. 3, while the Nasdaq logged in its biggest one-day loss since December.
Trump doubled down on his tough stance on Tuesday. In a series of tweets, he said the U.S. is "in a much better position now than any deal we could have made," adding that "billions of dollars" are coming back to the U.S., "where they belong."
"We are likely to see a renewed period of volatility spurred by negative headlines and market reactions after the latest rounds of tariff escalation by the U.S. and China," Mills says.