Chinese economist predicts price hikes in US due to Trump-imposed duties

The tariffs imposed by US President Donald Trump on imports of goods from China and Mexico will lead to an increase in consumer prices in the US itself. Chinese economist Andrew Leung told Izvestia on February 1.

"Of course, the tariffs will lead to higher prices for American consumers, kind of presenting including difficulties for ordinary Americans, because consumer prices will jump," he said.

With such an outcome, he said, the U.S. can only weaken its monetary system, which will further affect the value of its national currency as well as its dominance in the international arena. Leung added that these tariffs are "a great weapon for the head of state because it is based on American hegemony."

The expert noted that this "weapon" will force other countries to submit to the will of the United States. He added that Trump is also confident in the ability of tariffs to bring the country a lot of revenue.

Leung believes that Canada will not be able to respond to these tariffs, since the only large exports are agricultural goods.

However, the economist clarified that China, on the other hand, is the largest trader and producer on the global stage.

"Trump probably wants to make some kind of deal with [Chinese] President Xi [Jinping], <...> because America wants to focus on the Western Hemisphere and then maintain its dominance," he added.

How high is the threat of a trade war between the US, EU and China. Parsing

Trump announced plans to impose 25 percent duties on imports of goods from Canada and Mexico starting Feb. 1 the day before. Later this decision was confirmed by White House press secretary Caroline Leavitt.

As the American president pointed out, at the moment China, Canada and Mexico will not be able to do anything to prevent the upcoming introduction of duties According to him, Canada is responsible for significant amounts of drug smuggling to the United States.

In response, Canadian Prime Minister Justin Trudeau said that the country has an equal, strong and reasonable response to Trump's imposition of duties. He specified that the Canadian side does not want to introduce retaliatory measures against the US, while if the American side "takes this step", Canada will be forced to act.