In a recent development, the Trump administration has imposed a 10% tariff on exports from the Chinese mainland to the United States. He Zhiguo, the James Irvin Miller Professor of Finance at Stanford University, shared his insights in an interview with CGTN's Global Business.
Professor Zhiguo stated that the new tariffs have had only a minimal effect on the actual prices of Chinese exports, characterizing the move primarily as a symbolic gesture. \"While the tariffs signal a tougher stance, their immediate impact on consumer prices is limited,\" he explained.
However, he cautioned that this latest round of tariffs could introduce volatility into China's financial markets, especially in the aftermath of the Spring Festival holiday. \"Investors should brace for potential fluctuations as the markets adjust to the new trade dynamics,\" Professor Zhiguo advised.
The implementation of these tariffs comes amid ongoing trade tensions between the United States and the Chinese mainland, raising questions about the future trajectory of international trade relations.
Reference(s):
Analysis: New Trump tariffs on China more of a 'symbolic' move
cgtn.com
