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A ship hauls containers at a container port in Qingdao in eastern China's Shandong province Friday, July 6, 2018. The United States hiked tariffs on Chinese imports Friday and Beijing said it immediately retaliated in a dispute between the world's two biggest economies that President Donald Trump says he is prepared to escalate. (Chinatopix via AP)

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US-China trade war elevates the risks to the global economy

The trade war that erupted Friday between the U.S. and China carries a major risk of escalation that could weaken investment, depress spending, unsettle financial markets and slow the global economy.