The world’s two biggest economies are on the brink of a costly standoff. The US has announced tariffs of 25% on a swathe of Chinese goods, starting July 6th. China has vowed to respond in kind. ‘If someone wants a trade war,’ China’s Commerce Minister said, ‘we will fight to the end.’ President Trump is bullish, threatening further tariffs and tweeting: ‘trade wars are good, and easy to win.’ But the WTO has warned that a trade war would have a ‘severe’ impact on the global economy. We look at the forces driving the conflict and how each side might back down. With Helen Grady.
(Image: Cargo containers with USA and Chinese flags on their sides crashing together. Credit: Shutterstock)