Reported 12 months ago
Cornell University professor Eswar Prasad discusses the potential for increased US tariffs on China and the implications of the US-China trade war. Both President Biden and former President Trump support tariffs, with Trump suggesting even higher import taxes if re-elected. Prasad explains that China heavily depends on export markets, especially to the US and Western countries, and losing access to these markets due to tariffs could impact US inflation and limit product availability. He also points out structural and economic challenges facing the Chinese economy, emphasizing the need for export markets and foreign technology. Prasad predicts continued tensions between the US and China in the coming years, with uncertainties surrounding the Chinese economy in the short and medium term.
Source: YAHOO