The Trump administration’s latest 10% tariff on select Chinese exports is more symbolic than economically impactful, according to Stanford finance expert He Zhiguo. In an interview with CGTN, He emphasized the tariffs’ negligible effect on U.S. consumer prices but warned of potential turbulence in the Chinese mainland’s financial markets post-Spring Festival.
A Gesture Over Growth
He, the James Irvin Miller Professor of Finance, called the move a strategic signal amid ongoing U.S.-China trade relations rather than a substantive economic measure. While Chinese exporters have absorbed much of the cost, He noted the decision “reinforces political narratives ahead of the U.S. election cycle.”
Volatility on the Horizon
Despite minimal price shocks, He cautioned investors to brace for short-term market fluctuations. “The psychological impact on cross-border capital flows could outweigh direct trade effects,” he said, pointing to historical patterns of holiday-driven market adjustments.
Global Ripple Effects
Analysts suggest the tariffs may slow progress on multinational climate and tech collaboration frameworks. Young professionals and entrepreneurs are advised to monitor export-driven sectors in emerging markets, particularly green tech and AI hardware supply chains.
Reference(s):
Analysis: New Trump tariffs on China more of a 'symbolic' move
cgtn.com
