The United States could be the biggest loser in the tariff war triggered by President Donald Trump as countries across the world brace for impact.
This could set off a chain reaction, leaving the market roiled, Andy Xie, independent economist, told BloombergQuint in an interview. “The U.S. economy is led by the financial markets and if the stock market is down by 50 percent, U.S. could slip into recession. I don't think Trump is really prepared for that."
China today announced reciprocal tariffs of $3 billion on imports of certain products after U.S., less than 24 hours ago, announced fresh tariffs of $50 billion on Chinese goods.
"China is trying to incentivise Trump to negotiate and China could compromise on a lot of things like technology transfer and opening up international markets,” Xie said, adding that an all-out trade war is unlikely but cannot be ruled out.