Economics

Trump Rhetoric Raises Specter of 1930s-Style Trade War

  • Economists say U.S. imposed tariffs would damage Asian growth
  • China is most exposed but rest of Asia will suffer too

What Trump's Trade War with China Would Look Like

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U.S. President-elect Donald Trump’s promise to shrink a trade deficit with China through punishing tariffs wouldn’t just hurt the world’s second-biggest economy -- it would also damage the rest of Asia too.

That’s the increasing view of economists who say the risk of significant Trump-triggered trade tensions could slow growth in the world’s best performing region, which accounts for 67 percent of America’s goods trade deficit, according to a Morgan Stanley.