Article snippet: WASHINGTON — The United States and China are digging in for a prolonged trade war, with the Trump administration unveiling a new $16 billion bailout for farmers hurt by Beijing’s tariffs on Thursday and more companies saying they are redirecting supply chains away from China. Global markets tumbled as investors began coming to terms with the idea that President Donald Trump’s trade war is here to stay. Benchmark indexes in China, Germany, France and the United States all dropped. American crude oil prices were down roughly 5%, amid growing concern that the ongoing trade war would start to drag on global economic demand. The yield on the 10-year Treasury note fell to its lowest level this year, in a sign investors were pricing in lower levels of growth and inflation. Hopes for a quick resolution to the China trade fight faded further this week, with Treasury Secretary Steven Mnuchin saying on Wednesday that no additional meetings with Beijing are scheduled and that he is encouraging American firms to reorient their supply chains and source their products elsewhere. President Xi Jinping of China this week called for the Chinese people to begin a modern “long march,” invoking a time of hardship from the country’s history as it braces for a protracted trade war with the United States. “The tone of rhetoric that political leaders in both countries have adopted also suggests that it will take time to restore the U.S.-China relationship to where it was prior to the bre... Link to the full article to read more