The hikes followed Washington’s failed attempts this week to reach an agreement and end the trade war. Tariffs increased from 10 per cent to 25 per cent on targeted exports leaving China after Friday’s deadline. U.S. President Donald Trump said he is in no hurry to reach a deal, and threatened to expand tariffs to all Chinese imports into the U.S. In response, China promised to take “necessary countermeasures.” (CNN, The Guardian)

Talking point: The additional tariffs are a response to China’s reluctance to compromise on the U.S.’s concerns of intellectual property theft and challenges for U.S. companies in accessing China’s massive market. While the markets had stabilized by midday, they could see a more sustained dip if the trade war is further prolonged and if Trump follows through on his threat to extend tariffs. The move would be a particular blow to tech companies like Apple, which manufacturers equipment in China but has so far managed to avoid tariffs. The news isn’t good for Canada, either. On Thursday, Prime Minister Justin Trudeau called Trump to talk about the trade war and ask him to end steel and aluminium tariffs, noting that they could interfere with the new trade agreement with the U.S. and Mexico.