What is the trade war costing?

As the trade war rumbles on, presidents Donald Trump and Xi Jinping need to agree on a trade deal, as both economies are weakening.

A resolution, albeit likely to be only a short-term fix, should be taken well by markets. Moreover, it would be particularly beneficial for US President Trump in the lead-up to the presidential election in November 2020.  Both countries are being negatively impacted by the trade war. Export growth in China slowed from 12% year-on-year in Q3 2018 to a mere 0.1% H1 2019. In August, exports fell 1% from a year earlier, with a particularly sharp 16% decline in exports to the US. However, imports from the US were even weaker, plunging 22.4%. While there is no quick fix, an increase in agri...