The news: China launched two probes into US trade practices ahead of a planned trade summit between Presidents Donald Trump and Xi Jinping.

How we got here: The probes are a direct response to the Trump administration’s decision to begin two separate Section 301 investigations as it looks to reinstate higher tariffs following their reversal by the Supreme Court. They are meant to determine whether the US has implemented policies that disrupt global supply chains and introduce barriers to the trade of green products and are scheduled to last six months—though they could be extended if needed.

What it means for retailers: Renewed trade tensions between the US and China add to the uncertainty retailers already face in a volatile environment. While US Trade Representative Jamieson Greer said the “US objective continues to be economic stability and balanced trade with China,” the geopolitical situation could challenge relations between the two countries and make a consensus on trade harder to reach.

Go further: For more on tariffs, see our Live FAQ: How the US Supreme Court's Tariff Reversal Could Shift Retail and Search Growth.

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