Economist: Trump’s tariffs hurt China & US

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00:00Now, of course, things have gone up and down. And I know you obviously expected some kind of

00:04challenges coming from the U.S. administration's trade policy under the second round of Donald

00:10Trump's presidency. But how shocked were you by the revelations that came through on what

00:15Donald Trump called Liberation Day? Right. So I think economic impacts are definitely

00:19consequential. And we've seen this in the past couple of days, a week. So for China, I think

00:26it's going to be a demand shock because the U.S. market does account for somewhat 14.6 percent

00:33of China's exports back in 2024. And the Chinese government has been preparing for this. Right.

00:41They have been preparing since the first term of the Trump administration. So they have spent eight

00:46years really trying to strategize how to diversify exports, how to bolster the domestic market,

00:55how to build international partnerships. So I think all of this in some ways will help China

01:00to weather. Now, of course, the damages are not going to be only felt on the Chinese economy.

01:08The U.S. economy have also sustained a very large shock. And it's not just from the supply side,

01:14because they basically cut off their own kind of assets to the Chinese products, including consumer

01:21goods and also intermediate and capital goods, which are very important to the U.S. manufacturing sector.