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Why slowing economies could prod US and China to reach deal

January 2, 2019
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FILE- In this Dec. 2, 2018, file photo cranes at the Port of Gulfport are silhouetted by the setting sun at Gulfport, Miss. The Trump administration and China are facing growing pressure to blink in their six-month stare-down over trade because of jittery markets and portents of economic weakness. The longer their trade war lasts, the longer companies and consumers will feel the pain of higher-priced imports and exports. (AP Photo/Charlie Riedel, File)

WASHINGTON (AP) — The Trump administration and China are facing growing pressure to blink in their six-month stare-down over trade because of jittery markets and portents of economic weakness.

The import taxes the two sides have imposed on hundreds of billions of each other’s goods — and the threat of more to come — have heightened anxiety on each side of the Pacific. The longer their trade war lasts, the longer companies and consumers will feel the pain of higher-priced imports and exports.

Their conflict is occurring against the backdrop of a slowdown in China and an expected U.S. slump that a prolonged trade war could worsen — a fear that’s weighing on financial markets. Yet those very pressures, analysts say, give the two countries a stronger incentive to make peace.

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