American trade war could have drastic implications on the global economy and even split the world into two geopolitical trading blocs, according to the director general of the World Trade Organization,

The outlook for the U.S. and global economies this year and next has significantly worsened in the wake of President Donald Trump’s tariffs and the uncertainty they have created

President Donald Trump’s unpredictable tariff policy and countermeasures by America’s trading partners will likely deal a heavy blow to economies worldwide, with US prosperity hit particularly hard, the International Monetary Fund warned Tuesday.

Chief executives of Walmart, Target and Home Depot reportedly warned Trump that supply chain disruptions were already underway and would lead to empty shelves at U.S. stores in a matter of weeks.

Stocks opened higher in early trading Wednesday. The surge comes after Donald Trump backed off threats to fire the chairman of the Federal Reserve and showed a willingness to lower tariffs on China. Stocks continued to rally early Wednesday after Donald Trump backed off of threats to remove the chairman of the Federal Reserve and signals that tariffs on Chinese imports could be lowered in the weeks to come.

President Donald Trump said he plans to be “very nice” to China in any trade talks and that tariffs will drop if the two countries can reach a deal, a sign he may be backing down from his tough stance on Beijing amid market volatility.

President Donald Trump said on Tuesday that if China does not agree to a deal on trade, the U.S. will set the terms.

President Donald Trump on Monday kept up his verbal assault on Federal Reserve Chair Jerome Powell over the Fed's refusal for now to further cut interest rates, rattling financial markets growing ever more fearful that Trump may ultimately try to fire the U.

Of course Donald Trump has groused about Jay Powell before, but yesterday’s rendition was more acidic than usual, and came after Trump’s adviser Kevin Hassett said the White House would “continue to study” ridding Trump of the meddlesome central banker.