Only a global ‘de-risking’ from the US can stop Trump’s trade war, scmp.com

Zhou Xiaoming, senior fellow at the Centre for China and Globalisation in Beijing
[…] Furthermore, de-risking with the US economically does not seem impossible. Over 80 per cent of global trade is conducted without America. And the potential for trade expansion among the rest of the world is huge. Brics countries, for example, would be able to absorb the effect of the loss of the US market in four years, according to Warwick Powell, an adjunct professor at Queensland University of Technology.

For this de-risking to happen, the rest of the world should strive to expand trade among themselves by improving market access and concluding trade agreements. […]

To push back against Trump’s trade war, a unified response is essential. Operating independently would only play to Trump’s advantage, and render nations vulnerable to his bullying.

Since Trump is unlikely to stop inflicting pain on other economies until his voter base or the US economy is badly hurt, concerted efforts should be geared to maximise the effect of retaliation on his major concerns. For this purpose, countries should work together to develop a list of common target products, which could focus on major US exports such as vehicles, aeroplanes, fossil fuels and agricultural products including soybean, wheat and beef.

Ideally, a common minimum tariff for each target product would be set to enhance the impact of the retaliatory tariffs. Läs artikel