Trade war. It’s been all over the headlines this week after President Trump threatened a new 10 percent tariff on $200 billion in Chinese goods.
The development spooked markets and investors traded out of equities, sending the Dow Jones Industrials down 300 points and into a six-day slide. The latest tariff announcement comes just weeks after several rounds of announced tariffs on other goods from China, Canada, Mexico and Europe.
To help you understand what this means for our economy, let’s take a look at the basics of trade policy this week.