Uncertain Where the Trade War Will Go Next, Says Council on Foreign Relations

The video discusses the US-China trade war, highlighting its initial impacts on industries, particularly in the US. It emphasizes the uncertainty surrounding the trade war's outcome and its potential effects on market confidence. The video provides context on the trade difference between the US and China and discusses potential economic impacts, including a GDP hit if tariffs are implemented. It also covers China's credit issues and the PBOC's efforts in managing deleveraging, with insights from the IMF.

What is the primary concern for US industries in the initial stages of the trade war with China?

• Increased competition from Chinese companies

• Decreased demand for US products

• Uncertainty and lack of a clear end game

• Rising labor costs

How much could a 10% tariff across all countries potentially impact global GDP according to Bloomberg Economics?

• 0.8 percentage point

• 1.2 percentage points

• 1.5 percentage points

• 0.5 percentage point

What is the role of the Federal Reserve in the context of the US-China trade war?

• To negotiate trade deals

• To provide subsidies to affected industries

• To impose tariffs

• To monitor economic impacts and adjust policies

What economic issue is China facing alongside the trade war?

• Decreasing foreign investments

• Corporate defaults and increasing debt

• Rising unemployment

• High inflation rates

What is the IMF's stance on China's economic situation?

• The trade war will not affect China

• China should increase its exports

• Deleveraging is necessary and manageable

• China should reduce its imports