The trade dispute, which began last July, has hurt Chinese exporters, damaged companies on both sides and slowed global growth. Apple (AAPL
) partially blamed the trade war for a revenue decline in the first three months of 2019, and construction company Caterpillar (CAT
) said that Chinese tariffs cost it more than $100 million in 2018.
The latest actions are poised to make things worse. Experts have said that tariff hikes could hit growth in both economies, and that Beijing may be forced to step in with new stimulus measures. Global markets
have also been whipsawed by the trade fight. The Dow on Monday fell by more than 600 points.
Last week, the S&P 500 and the Nasdaq posted their worst weekly drops since December, while the Dow had its worst week since March. Analysts fear there could be worse to come
if the trade war escalates further. If the US presses ahead with its plan to apply tariffs to all of China’s exports, Beijing’s options to respond are limited as it has already targeted the vast majority of American exports.