Trumponomics
How China Can Weather Trump’s Trade War with Nouriel Roubini
Apr 16, 2025
Nouriel Roubini, a senior advisor at Hudson Bay Capital and NYU economics professor, dives deep into the U.S.-China trade war. He discusses how China might not only weather the tariffs but even find opportunities to emerge stronger. Roubini highlights China's resilience, its shifting strategies in global markets, and the potential risks of selling U.S. treasuries. He emphasizes the need for heightened domestic consumption and how cultural factors influence China's negotiation tactics, revealing the complexity of international relations.
25:32
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Roubini highlights that while the trade war places economic pressures on both nations, China's economy risks greater declines due to its significant surplus with the US.
- The podcast discusses China's long-term strategic advantages, allowing it to implement economic stimulus and retaliatory measures more effectively than the US during the trade war.
Deep dives
Impact of Tariffs on the US and China Economies
The trade war initiated by the Trump administration presents differing economic impacts for the US and China, with the latter facing greater potential growth challenges. China runs a trade surplus of around 2% of its GDP with the US, while US imports from China represent only about 1% of its GDP. Thus, if tariffs remain high and trade ceases, China's economy risks a decline of approximately 2%, compared to a 1% decline for the US. This economic imbalance suggests that China may suffer more severely if the trade war escalates, even as it continues to assert confidence in its ability to withstand these pressures.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
