Caught in the crossfire of trade tensions

THE trade tensions between the US and China - the world's largest and second-largest economies, respectively - are escalating.

US President Donald Trump last month accelerated the risk of a trade war by more than doubling planned tariffs to 25 per cent on US$200 billion in Chinese imports in a bid to nudge China to re-think its behaviour.

Chinese officials have retaliated. The two nations are likely be at loggerheads for months to come.