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Good morning.



Here’s what you need to know:

Waking up to a trade war

• The U.S. began imposing tariffs on $34 billion worth of Chinese products just after midnight, escalating a dispute between the world’s two largest economies.

Beijing retaliated quickly, announcing similar-size tariffs on an unspecified group of American goods. No official talks are scheduled, and there’s disagreement in the Trump administration about how to proceed, so a quick resolution seems unlikely.

Until then, expect increased costs for many businesses and consumers, and greater volatility in global stocks.