Five stocks and sectors at risk from the U.S.-China trade dispute

China's President Xi Jinping and US President Donald Trump attend a welcome ceremony at the Great Hall of the People in Beijing on November 8, 2017NICOLAS ASFOURI/AFP

The rapidly escalating trade dispute between the U.S. and China is taking its toll on equity investors around the globe.

Following U.S. President Donald Trump’s imposition of up to US$60 billion in tariffs on Chinese goods, Beijing quickly responded with a 25 per cent levy on imports of U.S.-made goods. They total US$3 billion on select items such as pork, fruit, wine, soybeans, steel pipes and recycled aluminum.

However, it may not be the size of the tariffs that markets are most worried about, but rather the response itself, which suggests more retaliation is coming.

“I’m not sure many Chinese have read the Art of the Deal,” said David Rosenberg, chief economist and strategist at Gluskin Sheff + Associates, referring to U.S. President Donald Trump’s best-selling memoir and business book. “No doubt, the President campaigned on protectionism, but so many of his supporters thought this was mere rhetoric. But it is now policy, aimed at supporting his Rust Belt Base, and for those of us in the investment community, this represents a new source of market uncertainty.”

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