This report examines the evolving dynamics of U.S.–China relations and their broad implications for global markets amid escalating trade tensions driven by an aggressive U.S. tariff strategy.
Below, we’ve outlined several key takeaways to give you a clear sense of the report’s core themes and findings. Download our full report for in-depth analysis and strategic insights.
Key Highlights
01
The tariff offensive: escalation and immediate economic fallout
The US Liberation day has triggered immediate and severe reactions resulting in global market turmoil across assets. After a period of sharp escalating trade hostilities, the trade tensions is beginning to ease with the US and China reaching a 90-day trade truce.
02
China's evolving playbook: resilience and strategic levers
China’s trade truce with the US has shown that China has evolved and moved beyond a purely reactive, tariff-for-tariff approach. This evolution is based on structural economic shifts and a more nuanced understanding of its intrinsic leverage points such as a diversified economic partnerships and diminished US export dependency, a large and continuously expanding domestic consumer market, and more.
03
US objectives and the limits of coercion
US objectives in the trade conflict with China seems multifaceted and ambitious which appears to be driven by the containment of China's rapid and continuing ascent in the world. It is also closely intertwined with domestic goals such as revitalizing US manufacturing capabilities. However, the US possesses considerable economic leverage to achieve its objectives such as a strong US financial market and more.
Interested to read the full version
The full report also covers:
- Has the US overplayed its hand? An assessment of strategic missteps
- The Switzerland truce: a tactical retreat and the future of tariff policy
- The new geoeconomic landscape: reshaped trade flows and investment horizons
