Moody's said the direct impact of these trade measures on the American and Chinese economies will be limited; but warned that if they escalate, the global economy would be threatened.
China vowed on Thursday that it would fight a potential trade war "until the end".
Stock futures fell sharply on Friday morning before rebounding. Our concern is that Brazil, Argentina, South America in general would find the way to support their needs during a time when tariffs would affect our ability to trade with China.
Trump administration officials say fears of a trade war are overblown.
Storm Team 11 Forecast: Rain changes to snow overnight
The forecast for Saturday is expected to have more precipitation in the form of a rain and snow mix developing in the afternoon. Temperatures will hover in the mid 30s this afternoon , then drop slowly into the lower 30s this evening and overnight .
"We've been told for our entire careers that trade wars made the Great Depression worse".
"We urge the USA to cease and desist, make cautious decisions, and avoid placing China-U.S. trade relations in danger with the goal of hurting others that eventually end up hurting itself", the statement said. China responded to news of the reforms by warning that while it did not want a trade war, it was "absolutely not afraid" of one and "fully prepared" to defend its interests.
The move has sparked a global fear of a trade war between the two biggest economies in the world.
"This is an opening gambit by China, signalling that the imposition of tariffs by the U.S. will elicit what Beijing views as a proportionate retaliatory response", said Eswar Prasad, a former chief of the International Monetary Fund's China division and now a professor at Cornell University in Ithaca, New York. The $50 billion tariff package does just that, and perhaps more importantly for the long-term is that it shifts US-China relations to more openly antagonistic ground. China has threatened to fight back, saying it will pursue tariffs on $3 billion in US products such as steel, pork and wine.
But China was not spared, with the US President pointing to his country's $504bn deficit with the country and confirming that there would be additional sanctions across a wide range of goods and services from software to fake Ralph Lauren polo shirts. Chinese President Xi Jinping sent two high-level envoys to Washington last month, but neither managed to resolve the situation, he pointed out. "We're doing things for this country that should have been done for many, many years".
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"China has done a very, very good job since it entered the WTO in 2001 of carefully constructing its protectionist policies, and other unfair policies, in a way that allows them to skirt WTO disciplines", he said.
"It's remarkable how badly Xi Jinping has mishandled and damaged the U.S".
"Maybe he wanted it this way, but Xi missed every opportunity to negotiate good-faith solutions to trade and investment disputes".
The Dow dropped more than 700 points Thursday, its worst loss since early February, as investors anxious the dispute could escalate and could slow down global economic growth and company profits.
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