Eurasia Group Predicts US-China Trade War in 2023
Ian Bremmer, founder and president of Eurasia Group, anticipates a trade war between the United States and China this year as Donald Trump re-enters the presidency.
"Everyone around Trump, with the exception of Elon [Musk], is pushing for decoupling our economy from China's," Bremmer told Yahoo Finance at the World Economic Forum in Davos.
Despite Trump's previous threats of tariffs, a Wall Street Journal report indicates he may present his trade vision without immediate action.
While other nations may negotiate, Bremmer believes China's reluctance to capitulate due to economic challenges will lead to retaliation.
"We're heading towards a trade war with China this year," Bremmer predicted.
Another complication is the fate of TikTok, banned in the US due to national security concerns. Despite Trump's promise of an extension, Bremmer expresses uncertainty about his legal authority.
Bremmer also warns of a "G-Zero" era, where no dominant power maintains international order. He believes the "globalist promise" of accountability has eroded, with billionaires wielding excessive influence.