HONG KONG – Renowned economist Stephen Roach has issued a stark warning about the potential repercussions of President-elect Donald Trump's aggressive trade agenda.

Speaking at a prominent economic forum in Hong Kong, Roach cautioned that many are overly confident regarding the current state of the global economy.

“There’s a prevalent belief that the world economy is thriving, but I would argue that this perspective is overly simplistic and dangerously optimistic,” Roach stated.

His insights come at a crucial time when uncertainties loom large over international trade relations.

Roach's Warnings on Tariff Strategy

Roach, who is affiliated with Yale Law School’s Paul Tsai China Center and has previously served as the chairman of Morgan Stanley Asia, highlighted that Trump's tariff strategy could ignite a series of retaliatory measures from affected countries.

This may not only destabilize trading relationships but also lead to heightened global economic tensions.

Implications for Global Supply Chains

With many industries relying on global supply chains, the economist emphasized that any trade war sparked by tariffs could have broad implications.

It potentially leads to increased consumer prices and reduced economic growth.

Business Preparations

“Businesses need to prepare for a rocky road ahead, as protectionist policies could unravel years of progress in trade,” Roach warned.

Conclusion