US-China Trade War on the Horizon, Warns Eurasia Group President
Eurasia Group President Ian Bremmer predicts a trade war between the United States and China this year, coinciding with Donald Trump's second presidential term.
"It's like two boxers touching gloves before a match," Bremmer told Yahoo Finance at the World Economic Forum in Davos, Switzerland. "There's a fight that's coming."
Bremmer believes that Trump's advisors, with the exception of Elon Musk, are pushing for a decoupling of the US economy from China. Trump previously threatened tariffs of 10% on China, while the Wall Street Journal reported that Trump may outline his trade vision without imposing immediate tariffs.
While Bremmer anticipates retaliatory measures from Mexico, Canada, and Europe, he believes China's economic challenges will prevent them from capitulating to Trump's demands.
"What I expect is we're heading towards a trade war with China this year," Bremmer said.
Another complicating factor in US-China relations is the fate of TikTok, which was banned in the US on Sunday. Trump has promised to grant an extension, but Bremmer questions his authority to do so.
"It is utterly unclear... what Trump is trying to do and what he can actually do," Bremmer said.
Bremmer also warns of a shift towards a "G-Zero" order, where no single power or group of powers can drive the global agenda and maintain order.
"It's the law of the jungle where the powerful apex predators [the billionaires] do what they want and everybody else has to suffer what they must," he said.