Trump, known for his protectionist rhetoric, has threatened to impose tariffs of up to 60% on Chinese goods—a move that could have significant repercussions for the global economy. While the “Trump Trade” could strengthen the dollar and boost U.S. stock markets, European and Asian markets are likely to feel negative effects.
China’s response will be critical. Beijing might implement selective tariffs on foreign trade while focusing on fiscal policies to stimulate domestic demand and safeguard its economy. However, China has limited room to further devalue the yuan without risking capital outflows and greater instability.
This new phase of economic tensions not only heightens the rivalry between the two superpowers but could also accelerate Chinese productive investments abroad as a way to bypass U.S. tariffs. Meanwhile, Europe may find itself needing to define a strategic position between Washington and Beijing, with significant implications for regional growth.
Trade dynamics between these two powers are likely to impact far more than just U.S.-China relations, creating new economic alliances and redefining global balances.
Find out why! Watch the analysis by Lorenzo Fuscà, Head of Wealth Management, and Stefania Cardone, Investment Advisory at Banca Profilo.
