Mohamed A. El-Erian , Columnist

What Game Theory Says About Trump’s Trade Strategy

Under one scenario, the tensions with China could lead to changes in the global economy that favor the U.S.

July 16, 2018 at 6:00 AM UTC

Mohamed A. El-Erian is a Bloomberg Opinion columnist. A former chief executive officer of Pimco, he is president of Queens’ College, Cambridge; chief economic adviser at Allianz SE; and chair of Gramercy Fund Management. He is author of “The Only Game in Town.”

They can get along.
Photographer: Qilai Shen/Bloomberg

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Financial markets were of two minds last week about the impact of mounting trade tensions between China and the U.S.

On the one hand, the escalating tit-for-tat tariffs still affect only a relatively small part of the two countries’ economies. The consensus baseline remains that the measures should not have a significant and lasting downward impact on the economy and stocks and, ultimately, may help bring about trade that is still free but fairer.