The trade war that President Trump has initiated could adversely affect the global economy including China, the EU, Mexico, Canada, etc. It may not entirely help the American economy either. As the trade war escalates, investors are likely to become nervous. Fears about a slowdown in the global economy could intensify. When this happens, capital could flow out of other economies and find its way to the U.S., pushing the value of the American dollar upwards. This will make exports from the U.S. more expensive, creating an adverse effect on companies located in the U.S. How could the U.S.-based companies hedge the risk of U.S. dollar appreciation resulting from the escalation of the trade frictions? What kinds of derivative instruments can be employed