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Donald Trump's protectionist economic policies led to the introduction of tariffs on $250 billion of imports from China. President Xi Jinping responded with tariffs of his own, affecting some $110 billion worth of US-made products. As the two global economic behemoths enter a trade war, what are the implications for both economies and the rest of the world?

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The Argument

The stock market and investors back the US over China, as the S and P 500 rose, rather than falling after the imposition of tariffs. This shows that investors and business across different sectors believe it will be helpful rather than harmful. It also means the US will be more able to ride out temporary economic setbacks caused by tariffs, as investors believe they will prosper in the long run.

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This page was last edited on Thursday, 23 Aug 2018 at 15:28 UTC