U.S-China trade war collapses global economy

The last thing a fragile world economic recovery needs is a new trade war between the U.S. and China, the world’s largest and second-largest economies. Yet that is where we seem to be now headed as U.S.-China trade relations get caught up in the U.S. presidential election campaign. This does not bode well for the world economic outlook and is particularly bad news for the export-dependent Chinese economy. Higher import costs could also be yet another source of world inflationary pressure.