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.
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) 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.
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) CEO Arne Sorenson's optimism on the country.
Here's what he told TheStreet.
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