Effects could tip one into recession and undermine other’s fragile economy but prospects for rapprochement are not hopelessTrump says exemptions on smartphones, electronics will be short-livedBusiness live – latest updatesSky-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. Continue reading...