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The world\u2019s 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. \u2018If someone wants a trade war,\u2019 China\u2019s Commerce Minister said, \u2018we will fight to the end.\u2019 President Trump is bullish, threatening further tariffs and tweeting: \u2018trade wars are good, and easy to win.\u2019 But the WTO has warned that a trade war would have a \u2018severe\u2019 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)