Craig Allen on the Looming U.S.-China Tariffs Uncertainty
In this episode of DC Insiders, Ambassador Craig Allen, former president of the U.S.-China Business Council, discusses with Wenchi Yu the potential economic impact of the Trump administration tariffs, noting that while China's economy shows resilience, U.S. exporters face challenges due to uncertainty. He highlights the first Trump administration trade war's negative effects on American jobs and farmers, and warns of current tariffs potentially leading to inflation and unemployment. Allen outlines critical upcoming tariff deadlines, emphasizing the White House's need for agreements to gain leverage with Beijing. He suggests a comprehensive U.S.-China trade agreement is unlikely due to significant structural challenges. He also anticipates new tariffs on mature semiconductors to impact Taiwan. Finally, Allen presents four possible scenarios for U.S.-China trade, from conflict escalation to a broad agreement, and advises Taiwan to remain confident due to its strong support in Washington.
