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ECONOMY

US-China Trade War: Economist Likens It to Vietnam

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US economist Adam Posen compares the US-China tariff war to the Vietnam War, arguing both sides are stuck in a stalemate with no easy exit. Posen criticizes Trump and Treasury Secretary Scott Bessent's belief that the US can win through self-inflicted economic harm, highlighting misunderstandings of international trade mechanics. He refutes Bessent's 'poker game' analogy, emphasizing trade's positive-sum nature. Posen argues China holds escalation dominance due to the US's reliance on Chinese goods, predicting significant economic damage for the US if the trade war continues.

Prepared by Christopher Adams and reviewed by editorial team.

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