The already begun “trade warfare” in the recent just formally starts to gain momentum, with two countries’ competition may cause higher tensions and the markets will certainly respond. Despite of the sharp speeches of politicians, economists estimate that the economy is badly affected by some specific sectors.

China on Friday accused the United States of starting “the biggest trade war in economic history” as the two sides imposed steep new tariffs on tens of billions of dollars of each other’s exports.

The Trump administration’s 25% tariffs are targeting more than 800 Chinese products worth $34 billion such as industrial machinery, medical devices and auto parts. They kicked in just after midnight ET, which is noon in Beijing.

China’s tariffs on US goods came into effect immediately afterward, a spokesman for the Chinese Foreign Ministry said Friday.

“China is forced to strike back to safeguard core national interests and the interests of its people,” the country’s Commerce Ministry said in a statement. It accused the United States of “typical trade bullying.”

Beijing said it will hit an equal value of US exports, a total of more than 500 items, including SUVs, meat and seafood.

The fed is worried about the trade war. ven before Friday, the trade dispute between the world’s top two economies had rattled markets and prompted warnings from companies of damage to their bottom lines and higher prices for consumers. American companies doing business in China are particularly worried, according to cnn.com

“Increased tensions in the US-China economic relationship will negatively impact … operations in China,” William Zarit, chairman of the American Chamber of Commerce in China, said in a statement Friday.The big question is how far the hostilities between Washington and Beijing will go.

The United States is also set to impose 25% tariffs on another $16 billion in Chinese exports later in the summer, and China has vowed to retaliate against US goods worth a similar amount. Economists say that if the back-and-forth stops there, the overall impact on both economies will be minimal even though some industries will suffer.

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