President Donald Trump has signed an order to impose stiff tariffs on imports from Mexico, Canada and China, fulfilling a campaign promise but raising the prospect of increased prices for American consumers.

ChinaFotoPress/Getty ImagesBEIJING - In the US-China trade war, it's been a week of rapid escalation. In theory, Beijing could trigger a panic in bond markets by dumping some of the $1.1 trillion in US Treasuries that it owns. "But I think Beijing's primary motivation right now in the trade war is to be able to withstand pressure from Trump. "It needs that foreign inflow to cushion its currency during the trade war," Hirson said. Furthermore, China has few alternative places to park its $3.1 trillion in foreign reserves.