The exchange of threats between Washington and Beijing on the introduction of new tariffs caused a decline in the major US stock indices. A statement by the Trump administration, China's response, as well as new threats from the United States, have exacerbated fears of escalating trade tensions between the US and China.

Companies and corporations that risk becoming major losers in this trade war are in our article.

Harley-Davidson

Motorcycles of this brand are popular not only in the US but also abroad. Over the past year, more than 16% of all motorcycles were bought by the EU. It was Europe that became the largest market for the American company.

If the EU enters the promised tariffs, then the situation may radically change. The EU threatens to impose taxes on absolutely different categories of goods, not just cars and motorcycles.

Monsanto

Soy beans are also at risk.

President of the American Soybean Association John Heisdorfer believes that these tariffs can become a real catastrophe, which was caused by the actions of the White House.

Their actions can lead to responses from the part of trading partners which can drastically reduce the demand for soy. And this is all when the agricultural sector is going through a really tough time.

According to Heisdorfer, he heard that American soybean is the first candidate for demand reduction.

Thus, changes will affect not only small and medium-sized farmers but also such giants as Monsanto.

Brown-Forman

Another unintentional victim is the Brown-Forman alcohol company which produces alcohol under the brands of Jack Daniel's, Woodford Reserve, and other types of alcoholic beverages. Brown-Forman and several other alcohol companies began to supply bourbon to the European market.

It was predicted that sales of American whiskey in the European market would grow from $2.4 billion in 2017 to $3 billion by 2021.

Ford

American automotive giants, such as Ford and General Motors, pay a tariff for the supply of cars to China at a rate of 25%, to the EU - 10%. The current tariff was planned to be abolished in the future. The Chinese government seemed to be ready for this. In return, US companies had to cooperate with local automotive companies.

The "Trade War" can destroy the existing relationship between the American automakers and Chinese import regulators. This is particularly painful for Ford which is widely represented in the Chinese market.

Tesla

The situation with Tesla can develop similarly with GM and Ford. However, in this case, the "trade war" promises even more problems. Deteriorating relations between the governments of the two countries could significantly weaken positions on the critical Chinese market.

Last year, Tesla's sales in the Chinese market amounted to $2 billion.

The introduction of tariffs can turn into an economic catastrophe for Tesla, as the company will have to spend more on supplies of necessary materials, including lithium which is a key component of batteries.

Walmart

Despite the fact that the company in 2016 proudly used the motto "Made in the USA", on the supermarket shelves, in addition to American products, there are still a lot of goods from abroad.

Walmart is already going through bad times, and if the cost of the imported goods is too high, then there will be nothing but to raise prices or incur losses, or stop supplying these goods altogether. Or all together.

Thus, the tariffs will also hit Walmart.

At the same time in the field of electronics, this scenario seems almost inevitable. In the US, there are not so many electronics manufacturers: about 39% of this category's products are imported into the country.

Apple

Geopolitical tensions have so far had little impact on Apple, as Americans are pleased to buy iPhones. The Chinese also like the company's products. But everything can collapse at one point if China begins to exert pressure on Apple or the relationship between the two governments deteriorates completely.

However, in this business there are nuances. The products are mainly assembled in China. However, development and design take place in the United States, therefore, it is all an American company. But it also risks becoming a victim of "trade wars".

Procter & Gamble

Procter & Gamble is going through some tough times, the supply of products under the Gillette brand is declining, and the company is trying to survive in a highly competitive environment. After the introduction of tariffs, the situation may worsen, as the cost of raw materials will increase, for example, metal for the production of blades.

At the same time last year, President of China Xi Jinping considered the possibility of reducing taxes on the import of personal goods. However, these plans will soon be abandoned.

Vivint Solar

Chinese solar panels appeared on the US market in 2014, while their price was unnecessarily low. So buyers appeared immediately. Then the US government decided to introduce tariffs that equalized the cost of Chinese and American panels.

Since then, wars around solar panels have subsided, as some tariffs have been abolished.

However, the White House announced tariffs of 30% for all imported solar panels. US solar panel manufacturers may benefit, but this is not so beneficial for companies that install them, in particular for Vivint Solar.

American manufacturers do not meet the demand in the market, over the past year, about 80% of the panels installed in the US have been imported.

This suggests that Americans can generally abandon the idea of installing solar panels.

Nike

Nike, like Apple, uses cheap labor in Asia. The main supplier of sports shoes is Vietnam, where half of the brands are produced.

At the same time, with the introduction of tariffs, shoes made in Vietnam may be too expensive for American consumers. And if China's actions are supported by other countries, then the company's products will also be at risk in foreign countries.

In particular, Nike may lose up to 18% of sales growth in China which was observed during the last couple of years.