The U.S.-China trade war is escalating, with both countries imposing restrictions on each other's industries. Chinese officials have instructed the country's airlines not to place orders for Boeing jets, while the U.S. government has informed Nvidia that a license will be required to export AI chips to China. This has led to significant financial consequences for both companies, with Nvidia taking a $5.5 billion charge and Boeing facing potential cancellations of orders. The trade war is causing uncertainty and volatility in the stock market, with analysts downgrading China's growth forecast. The situation is expected to continue to impact various sectors and result in collateral damage across markets.