Trade relations between China and the United States have completely melted down, which shouldn't surprise us at all.

Donald's plan to grandstand against China is failing miserably.

Watch ABC News' Rachel Scott break down the newest escalation in the trade war.

Overnight, the trade war between the U.S. and China escalating, as Beijing raises its

tariffs on American goods to 125 percent, set to take effect tomorrow.

Chinese President Xi Jinping, saying there are no winners in a tariff war and mourning going against the world will only result in self-isolation.

President Trump acknowledging the headwinds, calling it a transition cost.

There'll always be transition difficulty.

The market rebounded after the announcement of his 90-day pause, but that was short-lived.

Much of the gains wiped out as investors sold off after the rally.

As a new estimate from the Yale Budget Lab says the new tariff system will cost households

an average of $4,700 annually.

With a staggering 145 percent tariff on Chinese goods, economists warned things could go from

bad to worse if a deal isn't made.

This massive and completely unnecessary escalation marks the most aggressive and worrisive move yet in the unraveling of a trade relationship that helped shape global markets over the course of the 21st century.

Economists warn the rupture could devastate both economies, slashing profits, raising prices,

and sending shockwaves through supply chains that reach far beyond just the United States and

China. At stake is not just trade, but economic stability and diplomatic trust built over a

generation. And that is, that last point is so incredibly important. We are not just talking about an idiot playing a game of chicken with somebody who could completely outclass him in these kinds of maneuverings vis-a-vis tariffs and trade wars.

We're talking about the dismantling of a generation of a relationship that is quite frankly

central to the stability of the global markets.

China is in some ways our competitor for sure and not exactly an ally. I mean, we have many issues

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