US Headed for Trade War with China, Warns Eurasia Group Founder

According to Eurasia Group founder and president Ian Bremmer, the United States is poised for a trade conflict with China as Donald Trump enters his second presidential term.

"A fight is coming," Bremmer told Yahoo Finance at the World Economic Forum in Davos, Switzerland. "Everyone around Trump, except Elon [Musk], wants to decouple our economy from China's."

Despite Trump's previous threats of tariffs, a Wall Street Journal report suggests he may outline his trade strategy without immediate implementation.

Bremmer differentiates the situation with China from that with Mexico, Canada, and Europe. He predicts initial retaliation from these regions, but eventual agreements.

However, China's economic challenges, including a lackluster property sector and export dependence, may drive them to retaliate against new tariffs.

"We're heading towards a trade war with China this year," Bremmer asserts.

Further complicating US-China relations is the fate of TikTok, which faces a ban after a Supreme Court ruling. Trump has vowed to grant an extension, but Bremmer notes the legal ambiguities surrounding his authority.

Bremmer also warns of a "G-Zero" order, where no power or group possesses the will or capacity to drive global agendas and maintain order. He criticizes the lack of accountability and the influence of billionaires in this context.