China US trade war A trade row between the US and China is...

China US trade war
A trade row between the US and China is brewing after the United States decided to place steep tariffs on Chinese paper imports.

The move sparked an angry response from Beijing.

It opens the way for similar action against Chinese steel, furniture and textile exports.

It's a move with unpredictable consequences for the worlds most important trade partnership.

It comes against a backdrop where the booming Chinese economy means a larger US trade deficit with China, in the order of $US233 billion.

In reaction, stocks fell and the US dollar dropped on fears China would dump dollar denominated assets in response.