In April, U.S. President Trump tossed a couple of punches at Chinese President, Xi Jinping.

Trump’s left hook was an import tariff on steel. His uppercut was a tariff on aluminum.

These tariffs are like taxes aimed at China. They’ll make it tougher for Chinese companies to sell goods to the United States.

But trade is a two-way street. China buys a lot of U.S. products. China’s economic success might even be great for U.S. stocks.

If China punches back with its own import tariffs, it could hurt American businesses.

That’s why a trade war makes people nervous.

Images from Pixabay

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