The apparent US-China trade truce is misleading because neither nation has implemented structural changes to prevent future conflicts, leaving the global economy vulnerable to sudden escalation.
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A truce has cooled the trade conflict, but neither country has done anything to limit the outbreak of new hostilitiesDonald Trump’s trade wars have largely fallen off the headlines. Fears of new tariffs flare up from time to time when the US president goes off the rails – for instance, threatening to end US trade with countries with which it has a deficit unless the Federal Reserve cuts interest rates. But the sense that the world’s two largest economies are plowing ahead into an overt economic conflagration has taken a back seat to other, more salient fears, about Trump ending American democracy, AI killing us all and stuff like that.The sense of calm is misleading. Under the radar, the world is marching toward an economic war of potentially epic proportions, one that, history suggests, could well spill over into the real thing. Continue reading...
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