Trade Tensions Prompt Supply Chain Changes for Firms in China

On Wednesday afternoon, Apple Inc. cut guidance sending its stock down 10 percent and the S&P 500 down 2.5 percent. CEO Tim Cook, in a letter to investors, cited trade issues, “We believe the economic environment in China has been further impacted by rising trade tensions with the United States.”

The following morning, Kevin Hassett, chairman of the U.S. Council of Economic Advisers, added to the China concerns in an interview with CNN stating, “the Chinese economy is slowing in a way that I haven’t seen in a decade."