Trade tensions intensified in the second quarter of 2018. The US aggressively enacted more encompassing tariffs that were soon countered by their disgruntled trading partners. Investors reacted by retreating from the markets as fears of a trade war escalated. It is becoming increasingly evident that the US in no longer going to accept what it views as asymmetrical trade and military alliances as the status quo. This state of affairs has enormous implications for the US and its trading partners. Market participants must be prepared for a period of enhanced volatility as negotiations continue between the effected parties.