Sky-high US-China tariffs are a mutual trade embargo that will hurt both sides

Effects could tip US into recession and undermine China’s already fragile economy but prospects for rapprochement are not hopeless

Trump says exemptions on smartphones, electronics will be short-livedBusiness live – latest updates

Sky-high tariffs that now hang heavily over US-China trade mean, effectively, that they have declared a trade embargo on each other, normally an act of war. The economic consequences for both will hurt.

The US’s $150bn (£113bn) or so of exports to China will fall away quickly, while China’s $440bn worth of exports to the US may drop by up to 75% over the next 18 months, unless some sort of negotiation happens. No one will be spared the effects.

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