Hong Kong (CNN Biness)The escalating trade war between the and is caing fresh pain for global investors.

It was the first chance n markets had to react to the latest retaliatory measures from .
Beijing announced late Monday that it would raise tariffs on $60 billion worth of US goods from June 1. That comes after the hiked tariffs from 10% to 25% on $200 billion worth of Chinese exports on Friday following a breakdown in trade talks between the world’s top two economies.
n stocks “could be in for an extended period of pain,” said Jeffrey Halley, senior market analyst at Oanda. Equities with a riskier exposure to “may find it reaches migraine levels,” he added.
US stock futures, meanwhile, were pointing slightly up on Tuesday.
Investors around the world fear a protracted trade war in which both the and continue to raise tarfs. binesses that import Chinese goods pay the tarfs levied by the . Companies either eat that cost, which pinches their profits; or they pass the cost onto consumers, which can hurt demand for their products.
“This is a self-inflicted wound that will be catastrophic for the nation’s ,” said Rick Helfenbein, head of the n Apparel and Footwear Association. Tarfs “are taxes on n consumers that result in higher prices, lower sales, and lost jobs,” he added.
Footwear Association
Meanwhile, is digging in for a fight.
Ministry of Foreign Affairs spokesman Geng Shuang said Monday that will “never yield to external pressure,”hours before Beijing announced its latest round of tarfs.
Analysts say markets have to start repricing risk to reflect the new geopolitical reality.
“Even a deal is signed next week, it is now clear to that the - relationship will be fraught for decades to come” analysts at brokerage firm Jefferies wrote in a client note.
“As ’s economic and geopolitical rise butts up against existing interests, eleventh hour negotiations and brinkmanship will be a recurring theme which the markets will learn to price in,” they said.

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