Over the past few decades, the overall international economy has become far more globalized than ever before. Today, even countries that are not necessarily on the same footing when it comes to a variety of different social and political issues manage to find a way to engage in trade. Because of this, maintaining a proper balance in international trade is extremely important. While the United States and China have done a good job of maintaining a good trade relationship for a long time, it has gone through a lot of strain over the past few weeks (https://www.theguardian.com/business/live/2018/apr/04/china-us-trade-war-tariffs-wpp-markets-eurozone-jobs-business-live).
Over the past few weeks, president Donald Trump has made a variety of different claims discussing tariffs that he would like to place on China for imports. These tariffs have ranged significantly and in some cases are estimated to be as high as 50% for certain goods. While he has reportedly done this to try and encourage people to buy American products, it has been very damaging to the trade relationship with China.
Now that China has had a chance to consider the tariffs that the United States is placing on Chinese imports, China is also considering placing tariffs on items at the United States exports. Overall, China is considering placing a 25% global tariff on all items that are imported from the United States. This impact could have a major affect on a wide variety of companies and could shake up the entire global economy. Since these claims, global stock markets have fallen considerably.