Tags: nouriel roubini | trade | war | loser | trump | china’

Nouriel Roubini: 'In a Trade War Everybody Is a Loser'

Nouriel Roubini: 'In a Trade War Everybody Is a Loser'
(Dreamstime/Elantsev)

By    |   Monday, 09 April 2018 09:55 AM

Nouriel Roubini, professor at New York University says, warns all sides concerned that there are no winners in any trade war.

“I have a slightly pessimistic view because the economic nationalists are in and those who are internationalists are out,” Roubini recently told Bloomberg in an interview.

“Trade war is not a zero sum game, it is a negative sum game. In a trade war everybody is a loser,” the New York University economist said.

The U.S. move last week to threaten China with tariffs on $50 billion in Chinese goods was aimed at forcing Beijing to address what Washington says is deeply entrenched theft of U.S. intellectual property and forced technology transfers from U.S. companies.

Beijing claims that Washington is the aggressor and is spurring global protectionism, though China’s trading partners have complained for years that it abuses World Trade Organization rules and practices unfair industrial policies that lock foreign companies out of crucial sectors with the intent of creating domestic champions.

“Already, $3 trillion of national wealth in the equity market have been wiped out by statements and actions on China,” Roubini pointed out, adding “discipline is going to eventually come from the markets.”

This situation could escalate in a full scale trade war eventually, and the “U.S. rightly or wrongly feels that the rise of china is going to be a threat to the U.S. economy and security,” said Roubini, of Roubini Macro Associates.

For its part, China stepped up its attacks on the Trump administration on Monday over billions of dollars worth of threatened tariffs, saying Washington is to blame for trade frictions and repeating it was impossible to negotiate under “current circumstances.”

China's comments come after U.S. President Donald Trump on Sunday predicted China would take down its trade barriers, and expressed optimism that both sides could resolve the issue through talks.

Chinese state researchers and media talked down the likely impact of U.S. trade measures on the world’s second largest economy and described the Trump administration’s posturing on trade as the product of an “anxiety disorder,” Reuters explained.

“Under the current circumstances, both sides even more cannot have talks on these issues,” Foreign Ministry spokesman Geng Shuang told reporters at a regular news briefing.

“The United States with one hand wields the threat of sanctions, and at the same time says they are willing to talk. I’m not sure who the United States is putting on this act for,” Geng said.

The trade frictions were “entirely at the provocation of the United States,” he added.

Trump returned to Twitter on Monday to further defend his actions.

"When a car is sent to the United States from China, there is a Tariff to be paid of 2 1/2%. When a car is sent to China from the United States, there is a Tariff to be paid of 25%. Does that sound like free or fair trade. No, it sounds like STUPID TRADE - going on for years!" Trump tweeted.

(Newsmax wire services contributed to this report).

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Nouriel Roubini, professor at New York University says, warns all sides concerned that there are no winners in any trade war.
nouriel roubini, trade, war, loser, trump, china’
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2018-55-09
Monday, 09 April 2018 09:55 AM
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