Now, a fresh trade war could pull the rug from under what has become a critical source of growth. If enacted, that would mark a major escalation of a trade war that began during his first term and has been simmering ever since. Economists say the next phase of the trade war could be much tougher if it plays out along the lines Trump floated during his campaign. “The impact on trade would likely be much larger than the trade war 1.0," said Daniel Yi Xu, an economics professor at Duke University. Currently, it only accounts for about 40% of China’s economy, versus close to 70% in the U.S.

Source: Wall Street Journal November 15, 2024 12:11 UTC