Following the global friction concerning Russia in the last couple of weeks, things seemed to be getting out of hand when Donald Trump announced the US’ intentions of updating tariffs for Chinese imports, increasing the possibility of an all-out trade war.

Both the United States and China are leading the global economy in a variety of industrial sectors.

But China’s recent rise in the Tech Industry has come as somewhat of a threat to the US in the race for financial supremacy.

The President of the United States announced earlier in the week his plans of implementing a new tariff on Chinese aluminium and steel worth $60bn.

This sent shock waves throughout the global stock market, with many predicting that the US’ finances would face substantial damage.

Though market strategists have lowered the probability of an all-out trade war; China has already responded to the proposed tariffs by imposing their own set on American goods.

As of Monday, China has significantly increased the tariffs on 128 American products by 25%; totalling a possible of $3bn on US goods. These products include frozen pork/Spam, wine and certain fruits & nuts.

Many financial news outlets, though lowering the possibilities of the trade war, are preparing for a disaster scenario on the stock market.

Last week’s news of Trump’s plans has already had a hit on the European stock market, with Britain’s market value taking a slow dip in the last couple of days.

Uncertainty is on the rise and as were still dealing with the effects of the 2008 recession, a trade war can signify an outbreak in all proportions.

In turn, a Domino effect could signify a spike in inflation as well as an increase of job scarcity, ruining more lives day by day in both the East and the West.

Photo by Pepi Stojanovski on Unsplash

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