US President Donald Trump’s tariffs are having two broad impacts on the global economy – they are eroding international confidence in US leadership and disrupting global supply chains, and causing rapid geographic restructuring of international trade.
Beijing steps up as Washington steps back
As the most aggressively targeted nation, China has been firm, but measured. While the short-term shocks induced by the trade war put pressure on Beijing, they also propelled other countries towards deeper engagement with China’s long-term initiatives.