The Trump administration’s recent decision to impose a 10% tariff on Chinese exports to the United States is seen largely as a symbolic move with minimal impact on actual prices, according to a leading finance expert.
He Zhiguo, the James Irvin Miller Professor of Finance at Stanford University, shared his insights during an interview with CGTN’s Global Business. He emphasized that while the tariffs might not significantly affect prices in the immediate term, they carry symbolic weight in the ongoing trade tensions between the two nations.
“The actual effect on prices is minimal, but the gesture itself sends a strong message,” Professor He explained.
However, he cautioned that this latest round of tariffs could lead to volatility in China’s financial markets following the Spring Festival holiday. “Investors should be prepared for potential fluctuations as markets react to these developments,” he warned.
The implementation of these tariffs comes amid a complex backdrop of trade negotiations and economic strategies between the United States and China. The potential for market volatility highlights the interconnected nature of global economies and the ripple effects that policy decisions can have worldwide.
