The Goldman Sachs technology M&A team, led by Sam Britton, has cashed in on its software focus and decades of experience to dominate 2019's biggest deals.Technologyread more
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 summit comes amid fears over a global economic slowdown, and U.S. tensions over trade allies, Iran and Russia.Politicsread 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
Carl Medlock used to work at Tesla. Now he's one of the few people in the U.S. that can fix the company's original Roadster electric vehicles.Technologyread more
Trump does have some powerful tools that would not require approval from U.S. Congress.Politicsread more
Stocks dropped after Donald Trump ordered that U.S. manufacturers find alternatives to their operations in China.US Marketsread 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
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
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
The surprise tariffs President Donald Trump announced Thursday on $300 billion or so of Chinese goods takes the trade dispute between the two countries to a new level, even though in dollar terms it doesn't amount to a whole lot.
The president's announcement jolted markets, which had bounced back sharply off Wednesday's disappointing Fed rate cut only to have their legs cut out from underneath them by news of a heightened trade war.
Trump's move means that all Chinese goods entering the U.S. will be subject to some sort of duties. While the actual price tag of the latest action is technically just $30 billion, or about 0.14 percentage point of GDP, the psychological damage that could be inflicted comes at an inopportune time.
"The direct impact of these tariffs is smaller than a bread box," said Bill Adams, senior economist at PNC. "The larger effect is going to be through confidence channels and the effect on capital spending."
Indeed, if business surveys have been clear about anything it's that American business is nervous about trade. The closely watched Institute of Supply Management manufacturing survey dipped again in July and is teetering on contraction territory, while the Federal Reserve's key manufacturing gauge has fallen for consecutive quarters.
Morgan Stanley strategists said the latest round of tariffs, if implemented, would contribute to "slowbalization," or a continuation of lackluster growth, and could hasten a U.S. recession in as soon as three quarters.
"One key reason: about 68% of the next goods tariffed will be consumer goods and autos/parts, with more potential for immediate impact to the economy," Morgan Stanley strategist Michael Zezas said in a note.
A further reminder came in last week's GDP report.
The economy rose 2.1% in the second quarter, but the internals showed a clear tariff impact. Exports slumped 5.2% for the quarter and nonresidential investment, a key metric for business spending, dropped 0.6% for its worst showing since early 2016.
With Thursday's news of a trade escalation comes another sign that the tariff issue is unlikely to go away soon.
"Tariffs are affecting the part of the U.S. economy that is most integrated into world trade," Adams said. "This latest increase in tariffs increases the likelihood that higher trade barriers are the new status quo."
As for more specific impacts, Adams sees the tariffs raising inflation and lowering disposable income, which increased just 2.5% in the second quarter, its lowest rise in nearly two years.
He also projects a hit to consumption as well as increased margin pressure, particularly for heavy exporters. Q2 earnings season hasn't been kind to S&P 500 companies that generate more than half their sales outside the U.S., with profits down 13.6% from a year ago.
Inflation could hit sectors such as electronics, clothing, footware and toys and be a credit hit to companies in those sectors along with manufacturing, and apparel and leather, according to Moody's Investors Service, a credit rating firm. Other sectors that face impact as the trade war escalates include crude oil, transport equipment and semiconductors.
Retaliation from China could come in a number of forms, including tariffs on U.S. goods and pressure on American companies operating there.
"The escalation of trade tensions will increasingly weigh on the global economy and supply chains in an environment of already decelerating growth in the US, the euro area and China," Elena Duggar, Moody's associate managing director, said in a statement. "Uncertainty will dampen business investment and trade flows."
The tariff news comes a day after the Fed met market expectations — and Trump's demands — by cutting its benchmark interest rate by a quarter percentage point. However, Fed Chairman Jerome Powell's remarks after the meeting that he didn't see the move as the beginning of an extended rate cut cycle cascaded through markets and prompted more criticism from the president.
— CNBC's Michael Bloom contributed to this report.