A trade war between the world's two biggest economies is now in full swing. Chinese exports to the US face up to 245% tariffs, and Beijing has hit back with a 125% levy on American imports. Consumers,

Mr Trump’s decision to consider backing down in his trade war comes as the harm it has caused America’s economy becomes clearer. Trade shipments between China and the US are collapsing and a critical survey of American businesses shows growth in activity slumped to a 16-month low.

Japan had long maintained deep economic ties with both China and the United States. Recent trade tensions may challenge that approach.