Keynes and Bown update the sudden change in US-China trade negotiations and President Trump’s tariff escalation. They speak with Lingling Wei in Beijing (Wall Street Journal) about misunderstandings and why the two sides remain so far apart. They also discuss the expected economic impact of Trump’s new tariffs, as well as his proposal to buy US farm products and distribute them to poor countries.

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• Soumaya Keynes. 2019. So far, Donald Trump’s trade war has not derailed the global economy. An escalation would inflict much greater damage. The Economist, 9 May.
• Chad P. Bown and Eva Y. Zhang. 2019. Trump’s 2019 Protection Could Push China Back to Smoot-Hawley Tariff Levels. PIIE Trade and Investment Policy Watch, 14 May.