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Trump's Tariff Strategy: Economic Risks and China's Retaliation

1/2/2025

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Summary

Story summary

In 2025, Cornell University professor Eswar Prasad examined the economic challenges awaiting President-elect Donald Trump. He warned that while tariffs might inflate consumer prices, they could also pressure struggling nations like China, grappling with a real estate crisis and dwindling demand. However, the looming threat of retaliation from China adds a layer of complexity to this economic strategy.

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Story summary

In 2025, Cornell University professor Eswar Prasad examined the economic challenges awaiting President-elect Donald Trump. He warned that while tariffs might inflate consumer prices, they could also pressure struggling nations like China, grappling with a real estate crisis and dwindling demand. However, the looming threat of retaliation from China adds a layer of complexity to this economic strategy.