China is known as the second largest economy by nominal GDP and the world's fastest growing economy. As a result of this president Trump see china as a threat. He threatens to add tariffs on another $200 billion of china's goods and to start a trade war with china.
President trump threatens to start a trade war with china and that trade war can backlash and affect the U.S stock market. U.S companies that sell or get sales due to relations with china can face higher import taxes ranging from 15 to 20 percent. According to USA today "Wall Street fears business will slow for these firms, as their products will be more expensive for Chinese shoppers and manufacturers. That's bearish for stocks, as higher prices can lead to fewer sales and smaller profits and ultimately lower share prices." Some companies that will be greatly affected are Apple, Boeing, Caterpillar, Deere, Tesla, Borg Warner and Qualcomm.
In conclusion because these American brand companies will be greatly affected by Donald Trumps threat to start a trade war with china, it is hard and almost impossible for him to put such a threat in effect.
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