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Effects could tip US into recession and undermine China’s already fragile economy but prospects for rapprochement are not hopeless

• Trump says exemptions on smartphones, electronics will be short-lived
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Sky-high tariffs that now hang heavily over US-China trade mean, effectively, that they have declared a trade embargo on each other, normally an act of war. The economic consequences for both will hurt.

America’s $150bn (£113bn) or so of exports to China will fall away quickly, while China’s $440bn worth of exports to the US may drop by up to 75% over the next 18 months, unless some sort of negotiation happens. No one will be spared the effects.

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PS5 digital price in UK would rise to £430 and €500 in Europe as Japanese games developer cites ‘challenging economic environment’

Sony has increased the price of its PlayStation 5 by 25% as the video game industry reels from the impact of Donald Trump’s tariffs.

The Japanese game developer said it had made the “tough decision” to raise the price of the console’s digital edition to £429.99 in the UK and €499.99 in Europe, starting from Monday. There will be no price change for the standard PS5, which comes with a disc drive.

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Chinese customs official says country has diversified trade away from US in recent years

China has played down the risk of damage to its exports from Donald Trump’s tariffs, with an official saying the “the sky won’t fall”, as stock markets rose on Monday amid signs of a retreat on electronics restrictions.

The world’s second-largest economy has diversified its trade away from the US in recent years, according to Lyu Daliang, a customs administration spokesperson, in comments reported by state-owned agency Xinhua.

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