China and the US are levying tariffs on each other’s goods.The US has imposed duties on Chinese product categories like textiles, semiconductors, chemicals, plastics, motorbikes and electric scooters. China has imposed tariffs on US goods like fuel, steel products, autos and medical equipment.

The latest American tariffs have spurred US importers to place additional orders to be shipped and delivered ahead. That has already contributed to higher ocean and air freight rates, and elevated warehousing costs in America. Overall, the entire supply chain is expected to incur additional costs.

If the trade war continues, prices for products across many industries will increase.

The US has threatened to impose duties on over 500 billion dollars worth of Chinese goods exported annually to the US unless China agrees to sweeping changes in its intellectual property practices, industrial subsidy programs and tariff structure.

China has denied American allegations that it systematically forces the unfair transfer of US technology and insists it adheres to World Trade Organization rules.

The markets should expect bilateral tit-for-tat trade actions to continue for the foreseeable future as both the US and China have managed to convince themselves that they wouldn't lose out in this trade war too much.