Tuesday, the US announced about 50 billion dollars’ worth of tariffs against Chinese made products. Overnight, China retaliated. Now there are fears the two economic powers are headed for a trade war. The markets plunged as soon as they opened amid fears the US and China are heading into a trade war. China announced overnight it is putting a 25% tariff on 106 US made products including soybeans, beef, cars and some aircraft. It's a direct response to the tariffs the US put on about 1,300 Chinese products. The Trump Administration pointed out the US already has a $5,000,000,000 deficit with China. And President Trump tweeted this morning: "We are not in a trade war with China, that war was lost many years ago by the foolish, or incompetent people who represented the US." Neither the US nor the Chinese tariffs will take effect immediately. China says when and if it begins enforcing the penalties will depend on the outcome of negotiations between the two countries. China is America's largest soybean export market. The soybean harvest is still about six months away. Trade between China and the US totals about $650,000,000,000 each year.