Finance & economics | A superpower clash

Photograph: picture alliance

THE TRADE WAR is escalating, and fast. On April 8th Chinese officials vowed to “fight to the end” in the face of new threats from Donald Trump, made just hours earlier. Having at first promised levies of 34% on Chinese goods, America’s president now vows to ratchet up tariffs by another 50% if China does not drop its retaliatory tariffs, also of 34%. According to Goldman Sachs, a bank, such measures would lift America’s tariff rate on China to 110% on April 9th, when the levies are due to come into effect. A day later Chinese tariffs on American goods would stand at about 70%.

The worry is that wild swings could cause their own damage

As stockmarkets plunge, Donald Trump seems untroubled. That is scary

Investors are worried. At least the economy is starting from a position of strength

At companies from Alphabet to Goldman Sachs, bosses will be holding their breath

Saint Pierre and Miquelon earns a dubious honour 

Stockmarkets plunge further in response