Trade War Gets Ugly as President Trump Ups the Ante

Yesterday, President Trump imposed a 10% tariff on $200 billion worth of goods from China. For now, tariffs don’t yet cover Apple (AAPL) smartwatches and some other consumer products. While the tariffs are a somewhat toned-down version of what Trump previously threatened, they have nevertheless hurt sentiments. Trump also warned China that “we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports” if the country retaliated against the tariffs. China has previously retaliated against US tariffs with tit-for-tat measures.