The Guardian view on US-China trade: lower the threat level | Editorial

The US president has raised the stakes again with fresh tariff threats. But trade with China is not the same thing as a buying real estate

Trade wars do not start by accident. If the US and China contrive to launch a new era of tit-for-tat protectionism to match that last seen in the 1930s it will be because of political decisions taken in Washington and Beijing by those with a full understanding of the consequences of their action. Comparisons with the drift to war in the summer of 1914 are wide of the mark.

Despite announcing plans for 25% tariffs on a small range of US imports this week, China has made clear that it wants to avoid a trade war. It will be happy to disarm if Donald Trump removes his threatened action against $50bn of Chinese goods. But Mr Trump is now threatening to escalate the battle with another $100bn of tariffs. The financial markets have been by turns spooked, then calmed, then alarmed again.

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