US-China Trade War VIDEO MATERIAL CURRENT ISSUES IN INTERNATIONAL BUSINESS WHAT IS A TRADE WAR BETWEEN THESE TWO COUNTRIES? • The world's two largest economies have been locked in a bitter trade battle. • The dispute has seen the US and China impose tariffs on hundreds of billions of dollars worth of one another's goods. • US President Donald Trump has long accused China of unfair trading practices and intellectual property theft. WHAT TARIFFS HAVE BEEN IMPOSED? • Mr Trump's tariffs policy aims to encourage consumers to buy American products by making imported goods more expensive. • The US has imposed tariffs on more than $360bn (£268bn) of Chinese goods, and China has retaliated with tariffs on more than $110bn of US products. WHAT PRODUCTS COULD BE AFFECTED FROM THIS WAR? • The Chinese products hit by US tariffs since the beginning of the trade war have been wide-ranging, from machinery to motorcycles. • In the latest round, the US imposed 10% duties on $200bn worth of Chinese products including fish, handbags, clothing and footwear. • Those products will be the ones targeted with a tariff hike from 10% to 25%, if it goes ahead this week. HAS THE TRADE WAR HIT THE MARKETS? • The US-China trade war has been a great source of uncertainty for financial markets over the past year. That uncertainty has weighed on investor confidence around the world, and has contributed to losses. • In 2018, Hong Kong's Hang Seng index fell more than 13% and the Shanghai Composite slumped nearly 25%. • Both indices have recovered some ground this year and are up 12% and 16% respectively so far in 2019.