It's on.

President Trump threatened to unleash a fresh round of tariffs on $200 billion worth of goods from China in the latest escalation of trade war rhetoric between the world's two biggest economies.

Trump said a 10% levy would apply "after the legal process is complete" if China "refuses to change its practices, and also if it insists on going forward with the new tariffs that it has recently announced," a reference to Beijing's intent to match a list of $50 billion worth of goods now subject to tariffs from Washington. China called Trump's latest salvo "blackmail" and said trade wars would harm "not just the people of China and the U.S. but all over the world."

Stocks tanked on Tuesday. 

This is what top executives in business have told TheStreet about the impact of a trade war with China. 

Boeing and a Trade War

The bottom line is that China needs Boeing's (BA) - Get Report planes, so the impact of a trade war may not cripple the aerospace giant's profits. 

"China is an important relationship for us," Boeing CEO Dennis Muilenburg told TheStreet. "The world needs 41,000 new planes, and more than 7,000 of those are in China. So we are doing well in China. Our Chinese airline customers are very important to us, we have a strong supply chain in China as well."

Watch more of what Muilenburg had to say on the topic below. Boeing shares dropped more than 4% on Tuesday. 

Market Badly Mis-Pricing Trade War Risk?

Minneapolis Fed chief Neel Kashkari paints a brutal outlook if the U.S. were to get into a trade war. 

Here's what Kashkari told TheStreet:

[A trade war with China] could be profound. A major [market] correction could certainly be possible. Trade has been net positive for global economic growth, and if there was a full blown trade war between the U.S. and China U.S. economic growth would be hurt and Chinese economic growth would be hurt. Global growth would be hurt. And then there would be a shock to confidence and I think you would see equity markets responding to that shock to confidence.

It's clear we have to avoid that outcome. But, we also need to achieve a full and fair trade environment."

Bullish Institutional Investors Ready to Sell?

A potential global trade war has some of Stifel Financial's clients worried. 

"Clearly, a trade war is what has the market concerned," Stifel chairman and CEO Ron Kruszewski told TheStreet at the investment bank's 2018 Cross Sector Insight Conference. "On the one hand, you have tremendous stimulus with the tax cuts, but this talk of trade wars certainly will spook any capitalistic market as you want free trade."

Watch more of the interview below. 

Marriott CEO Still Bullish On China

Fears of a trade war haven't shaken Marriott (MAR) - Get Report CEO Arne Sorenson's optimism on the country. 

Here's what he told TheStreet. 

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