Nouriel Roubini cautioned that China’s pride and strategic patience could lead to heightened tensions with the U.S. after Trump’s 10% tariff hike.
Nouriel Roubini Reacts to Tariff Hike Tensions
NYU economics professor Nouriel Roubini warned that China probably won’t give in after the Trump administration raised tariffs by 10%. In a post on X, Roubini said that China’s strong sense of national pride and long-term planning mean that Trump’s tough discussion style may not work well with them.
His words came after Trump decided to pause tariffs on Canada and Mexico after getting promises to reduce drug trafficking. The government became stricter with China, and Trump said he wasn’t hurry to talk about agreements.
Roubini cautioned that not recognizing China’s patience could raise tensions. He expects that the economic split will happen chaotically instead of smoothly.
China responded quickly by imposing tariffs on U.S. coal, LNG, and farm equipment. They also started a fight with the WTO and an investigation into Google for antitrust issues. Some experts worry that increasing trade tensions could harm the global economy. However, supporters of Trump believe his method will make the U.S. stronger over time.
