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President Donald Trump's trade war against China, which includes only a few olive branches, has become one of the decisive battles of his presidency.
While Trump would argue that China loses this war, former ambassador to the United Nations, Samantha Power, recently claimed that the conflict was affecting both the Chinese economy and ordinary American workers, including many voters voted for the president.
"It's a kind of mutually assured destruction right now," Power said in an interview with Yahoo Finance editor Andy Serwer.
Power's comments, ambassador to the United States Organization under the Obama administration, were published one day before China published a list of more than a dozen items spared from tariffs, including shrimps and anticancer drugs. A day after that, Trump tweeted that he would delay a planned $ 250 billion increase in Chinese goods from October 1 to 15 as a "gesture of goodwill." However, a period of two weeks does not change. Andrew Polk, co-founder of the Trivium China research company in Beijing, told Bloomberg on Wednesday that the two sides remain "structurally structurally at odds."
Trump has already imposed new tariffs on thousands of consumer goods from China on September 1st. JPMorgan estimates that the rates will cost the typical US household $ 1,000 a year, said Yahoo Finance's Rick Newman on the day they come into effect.
As Power noted in his interview with Serwer, some people "are hurting themselves in the United States."
Power made these remarks during a conversation aired in an episode of Yahoo Finance's "Influencers with Andy Serwer" series, with a series of weekly interviews with business leaders, politicians and politicians. and entertainment.
Do not "do favors for the Chinese economy"
There are already signs that the trade war is beginning to harm the US economy. A key study released earlier this month showed that factory production in the United States declined in August for the first time in three years. In other words, Trump's trade war weighs heavily on the manufacturing sector – which the president has pledged to bring back to the United States after his presidential campaign. Will Trump try to solve the trade war before the next elections?
"It depends on what President Trump is willing to concede, how much face he feels he's going to lose," Power told Yahoo Finance. "But you know, I know one thing, and it's that President Trump will put his own political fortune above the welfare of the workers he claims to represent."
For his part, Chinese President Xi Jinping probably thinks he has the upper hand in the trade war, according to Power. But the Chinese economy might not be as strong as China allows. While the Chinese economy continues to grow, this growth has slowed down to 6.2% in the second quarter, according to Chinese officials. This is the lowest level since the start of tracking these data in 1992. Alternative data show that the situation could be even worse for China, reported the Wall Street Journal this week. And the trade war "does not favor either the Chinese economy," Power said.
Power, who became US ambassador to the UN in 2013, has already commented on China. In her new memoir titled "Education of an Idealist," she noted that viewing live footage of the Chinese government's crackdown on protesters on Tiananmen Square on television in 1989 had had it deeply marked.
Before becoming an American ambassador, she received the Pulitzer Prize for her book on America's response to the genocide of the twentieth century. She also worked as a war correspondent and was a professor at Harvard Kennedy School.
Erin Fuchs is Associate Editor at Yahoo Finance.
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