The Inside Story Podcast Could the US-China tariff deal avert a possible global trade war?
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May 13, 2025 In this engaging discussion, Jayant Menon, a former lead economist at the Asian Development Bank, and Huiyao Wang, founder of the Center for China and Globalization, dive into the intricate US-China tariff negotiations. They explore how the recent deal aims to prevent a full-blown global trade war and its implications for the world economy. The conversation highlights the interconnectedness of both nations, the challenges of unilateral trade policies, and the critical importance of cooperation for future growth. Will this ceasefire spark renewed business confidence?
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Trump's Trade System Vision
- President Trump aimed to reshape global trade to fit 21st-century realities rather than post-WWII norms.
- He emphasized bilateral and regional trade deals over large multilateral ones for better cooperation.
Tariffs Backfire Globally
- Trump's aggressive tariffs backfired, hurting U.S. stock markets, consumer confidence, and global supply chains.
- Both U.S. and China recognized the damage and moved to de-escalate to avoid a potential global recession.
Tariff Deal is Ceasefire
- The current tariff deal is more a ceasefire than a true agreement, with high tariffs still in place.
- Trade negotiations require longer than 90 days to create meaningful, enforceable agreements.