US-China Trade War Looms as Trump Reassumes Presidency
Eurasia Group founder and president Ian Bremmer predicts a trade war between the US and China this year following Donald Trump's inauguration.
"It's like two boxers touching gloves before a match," Bremmer said at the World Economic Forum in Davos. "There's a fight that's coming."
Trump has threatened tariffs of 10% on China and 25% on Mexico and Canada. While a Wall Street Journal report suggests he may delay imposing new tariffs, Bremmer believes the situation with China is different.
According to Bremmer, China's economic challenges make it unlikely to capitulate to new Trump demands. Instead, he expects retaliation.
"What I expect is we're heading towards a trade war with China this year," Bremmer said.
Another complicating factor is the fate of TikTok, banned in the US by the Supreme Court. Trump has promised a reprieve, but Bremmer questions the legality of such a move.
Bremmer also warns of a "G-Zero" order, where no single power or group drives the global agenda or maintains international order. He criticizes the "globalist promise" of accountability, which he believes has been broken.
Bremmer's predictions underscore the potential for increased tensions and uncertainty in global trade and geopolitics this year.