The US-China trade war is unlikely to be settled soon | Nils Pratley

Trump needs a quick result but is unlikely to get one without drawing in other nations

Jack Ma’s prediction that the US-China trade war could last 20 years sounds plausible. At the very least, the Alibaba billionaire’s opening analysis is surely correct: “If you want a short-term solution, there is no solution.”

First, an immediate climbdown by either side is out of the question. Donald Trump’s imposition of 10% tariffs on $200bn of Chinese imports was quickly followed by China’s retaliation – duties of up to 10% on $60bn worth of US goods travelling in the other direction. Beijing’s response was weaker than some had expected but could not be described as a step backwards. China seems to be saying that it has been drawn reluctantly into this tit-for-tat exchange but is prepared to keep going if necessary.

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Australia’s economic growth at risk as US-China trade war escalates

Economists and politicians warn Australia is exposed to both economies and their tariff blows

Australia’s economic growth could suffer a serious setback as the country’s exporters risk being caught up in the mounting trade war between the United States and China.

As Beijing retaliated with tariffs on $60bn of US goods following the Trump administration’s $200bn hit on Chinese imports, a closely watched index on Australia’s economic prospects pointed to a slowing in momentum for the remainder of the year and into 2019.

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