#USChinaTensions The situation signals a sharp escalation of the trade conflict between the USA and China, with potentially far-reaching consequences for global markets. Here’s how this could develop and what it could lead to:

1. Escalation of the trade war

If the USA begins to grant tariff benefits only to those countries that reduce trade with China, it will create a kind of economic 'cold war.' Countries will have to choose: align with the USA or continue cooperation with China — and neither option will be easy or safe. China's response with a promise of 'decisive and mirror' measures could lead to:

• Imposition of tariffs or trade restrictions on countries that supported the USA.

• Active strengthening of ties with neutral or developing countries.

• Retaliatory measures against American companies operating in China.