The European economy will be at the losing end of the US-China trade conflict, whatever its outcome, and even if Beijing and Washington manage to clinch a deal after months of brinkmanship.

The US on May 10 increased tariffs on $200bn worth of imported Chinese goods and threatened to slap levies on every type of Chinese products if the two sides don’t come to an agreement. China retaliated a few days later by raising duties on a range of American imports, from toothpaste to cotton or aircraft parts.