Mr Trump’s decision to consider backing down in his trade war comes as the harm it has caused America’s economy becomes clearer. Trade shipments between China and the US are collapsing and a critical survey of American businesses shows growth in activity slumped to a 16-month low.

China has expressed willingness to resume trade talks with the United States. The development comes a day after President Donald Trump suggested cutting tariffs on Chinese goods. However, Beijing warned it won’t negotiate under continued threats.

China warns it will retaliate against countries that support U.S. trade moves seen as harmful to its interests. Rising tensions signal global ripple effects in the ongoing trade conflict.