“The tit for tat continues, however ultimately This particular doesn’t lead to a full-blown trade war,” El-Erian said.
“When people realize in which at the end of the day, the U.S. will prevail, because [China] is usually a less open economy, because [the U.S.] is usually a more dynamic economy, in which ultimately you may end up in a situation where the U.S.’ position in global economic terms is usually better off,” he said.
Still, some fear in which 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 usually in which you may end up changing the global landscape in a way in which 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 entire world is usually less solid than the U.S.,” El-Erian said.