How long do you think the current trade war between the U.S. and China will last?
Based on the way firms have been changing suppliers, our model predicts there is a less than 20 percent chance the trade war is over by 2025. Our model estimates that the US-China trade war has a 17 percent chance of ending in 2025, so it will most likely last at least four or five more years. Of course, there’s always a chance that something will break this logjam. It was a big surprise in 1971 when Nixon lifted a 21-year trade embargo on China. Nixon was attempting to get us out of the Vietnam War, and he was hoping the Chinese, who were supporting the Vietnamese, could put some backroom pressure on Vietnam. But it’s not clear what factors exist today that could pull us out of the current trade war.
Answers by
University of Rochester