The Trump White House on Wednesday announced a fresh round of tariffs on Chinese goods — and the stock market proceeded to take another nosedive.
Breaking down the impact of the new tariffs, CNN financial analyst Richard Quest said that there are potentially few winners and a whole lot of losers in the latest round of the president’s trade war.
Pointing to the losses in Wednesday’s stock market, Quest said we can expect more days like this if tensions keep escalating.
“Is this what a trade war looks like? Yes,” he said. “And at this stage, we’re only in the skirmish section.”
Host Kate Bolduan then asked him what comes next — and he pointed to a chart showing nothing but red numbers, indicating a dramatic decline in share values.
“This is what the next stage looks like!” he said excitedly, before pointing to dropping share prices of key American companies such as Caterpillar and United Airlines. “Wherever you look, you are seeing the damage that is being done! And remember the important thing about a trade war: The gains are very limited. They are those industries that benefit. The losses are widespread and diversified throughout the economy.”
Watch the video below.