>> The tit-for-tat trade spat between the U.S. and China once again leading to nail biting across American industries stretching from autos to agriculture. Beijing on Wednesday swiftly retaliated with its own $50 billion hit list after Washington slapped another round of tariffs on Chinese made goods the day before.
China, going after signature American exports from across a wide range of industries, soybeans, planes, cars, beef and chemicals would all be subject to a 25% import penalty. Escalating tensions between the world's two biggest economies could have a major ripple effect says Reuters' trade correspondent David Lauder.>> We've had a few early volleys going back and forth in what could become a trade war between the United States and China that could be very damaging to the world economy.
>> Those worries initially led to a 2% stock market plunge Wednesday, which caught the attention of the White House's new economic adviser, Larry Kudlow. He tried to inject some calm into the market in this audio of him talking with reporters.>> I get it, I understand the anxieties, but let's just see.
Look, let me repeat my mantra. If this thing works out, at the end of that rainbow is a pot of gold, and if you open up that pot, there's better growth. That's what the President wants, opening markets, lowering barriers, and play by the rules.>> The new Trump tariffs won't go into effect for at least two months, and China won't move until the US does.
That eased investor fear and sent stocks higher heading into the close. Investors hope there's time for both sides to cool it before trade threats turn into a trade war.