Days after imposing large tariffs on virtually every U.S. trade partner – and an island chain inhabited chiefly by penguins – Trump paused most of the duties in response to a stock market collapse and turmoil in the bond market that presaged long-term economic pain at home.

The world’s two largest powers are closer to a full economic break than ever, as President Donald Trump and Chinese leader Xi Jinping refuse to back down in a high-stakes game of chicken.