>> China is calling it the quote, largest scale trade war and blaming the US for starting it. But the trade spat that officially kicked off Friday between Beijing and Washington failed to spark the kind of Wall Street terror seen in recent weeks. Investors had another solid month of US job creation to take comfort in.
Business tax cuts and lower deregulation were enough to keep the hiring going, even as the drum beat leading up to the trade war beat louder and louder. And it's not just the labor market that suggests the US economy is strong enough to offset the damage from this opening fight, says Reuters Trade Correspondent David Lawder.
>> Generally income's are up, demand for final good is up, property prices are steaming ahead. So there's a lot of signs for optimism in the economy right now. These tariffs are actually just affect only a small portion of that.>> But experts warn, this trade war could turn into a long and bruising battle for both economies as neither side looks ready to back down.
And if Trump makes good on a threat to go all the way up to a tariff on $500 billion worth of Chinese goods, then the pain will certainly trickle throughout the economy at the busiest time of the year.>> Shipments to retailers for the Christmas season are either on the water or in process and are due to really arrive in this country in the early fall, late summer time frame.
So a lot of those products could be hit by tariffs. Then you could start to see some of those prices possibly rise for the Christmas season.>> And the longer the fight, the further the downside. Supply chain disruptions, slower hiring, and weaker pay growth could all leave Americans feeling like losers in a war Trump said would be an easy win.