🌍 In a recent analysis, Jostein Hauge, an assistant professor at the University of Cambridge, revealed that the impact of President Trump's tariffs on the Chinese mainland might be less severe than expected.
"China's diversified trade partnerships are limiting the economic impact of US tariffs," Hauge explained. This means that China isn't heavily reliant on the US for its trade, so the tariffs don't disrupt their economy as much.
Additionally, Hauge pointed out that Trump's tariffs are more of a negotiating tool than an actual incentive for the US. Rather than aiming to immediately boost the US economy, the tariffs are intended to create leverage in trade discussions.
📈 This perspective suggests that the tariffs are part of a broader strategy to manage and negotiate international trade relationships, rather than a direct means to spur domestic growth or significantly harm trading partners like China.
Reference(s):
Cambridge economist: Trump's tariffs unlikely to hurt China or spur US
cgtn.com
