The Wall Street Journal reports on the global effects of the local/bilateral US/Chinese trade war. A perfect application for the large open economy diagram! Can you work out the effects of a US tariff imposed on Chinese goods and then the Chinese retaliation. Who wins/looses? Then Draw the US on the vertical axis and “The Rest of The World” on the horizontal axis to show the impact of the Trade War in the US on the rest of the world. Who wins/looses?