"The tit for tat continues, but ultimately it doesn't lead to a full-blown trade war," El-Erian said.
"When people realize that at the end of the day, the U.S. will prevail, because [China] is a less open economy, because [the U.S.] is a more dynamic economy, that ultimately you may end up in a situation where the U.S.' position in global economic terms is better off," he said.
Still, some fear that Trump's nontraditional negotiating tactics may have gone too far.
El-Erian said as long as the risks are managed, "One of the upside risks, is that you may end up changing the global landscape in a way that favors the U.S. Because countries will realize, if we slip into a trade war, while everybody suffers, [the] U.S. does better in relative terms," he said.
"The rest of the world is less solid than the U.S.," El-Erian said.
https://www.cnbc.com/2018/07/09/the-us-is-winning-the-trade-war-says-mohamed-el-erian.html?__source=sharebar%7Ctwitter&par=sharebar
"When people realize that at the end of the day, the U.S. will prevail, because [China] is a less open economy, because [the U.S.] is a more dynamic economy, that ultimately you may end up in a situation where the U.S.' position in global economic terms is better off," he said.
Still, some fear that Trump's nontraditional negotiating tactics may have gone too far.
El-Erian said as long as the risks are managed, "One of the upside risks, is that you may end up changing the global landscape in a way that favors the U.S. Because countries will realize, if we slip into a trade war, while everybody suffers, [the] U.S. does better in relative terms," he said.
"The rest of the world is less solid than the U.S.," El-Erian said.
https://www.cnbc.com/2018/07/09/the-us-is-winning-the-trade-war-says-mohamed-el-erian.html?__source=sharebar%7Ctwitter&par=sharebar
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