Economics Professor Roubini Warns: China's Pride Poses Major Challenge for Trump's Tariff Strategy

Economist Nouriel Roubini argues that China’s national pride makes it unlikely to yield to U.S. tariff pressure.

No Respite for China

Nouriel Roubini, an economics professor at New York University, warned the U.S. government that China is unlikely to yield to the Trump administration’s demands after being slapped with a 10% tariff hike. In a post on X, Roubini said China’s pride, which he described as “too much,” makes the country an unsuitable candidate for Trump’s high-stakes negotiating tactics.

Roubini’s remarks came just days after the Trump administration announced it would suspend its controversial tariff regime against Canada and Mexico. Trump said he took this step after the two countries agreed to do more to block the flow of drugs into the United States. Despite similar accusations against China, the Trump administration imposed a 10% tariff hike against the country.

Shortly after, Trump stated he was in no hurry to negotiate with his Chinese counterpart. However, Roubini believes the Trump administration is underestimating China’s resolve, which could lead to greater challenges for both countries.

“Xi/China has too much pride and has mastered Tzu’s Art of War that is more strategic and long-term oriented than Trump’s narrow-minded Art of the Deal. So things will get rougher in the US China relationship in the years ahead. A disorderly decoupling and escalation is still more likely than an orderly Grand Bargain that just de-risks the mutual relationship in key critical tech-related sectors and allows for a managed strategic competition,” the NYU professor explained.

The professor suggested that Xi’s “strategic patience” and calm demeanor will help the Chinese leader outmaneuver an “angry, impulsive and unpredictable” Trump.

After Trump’s order imposing an additional 10% tariff on Chinese goods took effect, Beijing announced retaliatory measures targeting coal, liquefied natural gas products and agricultural machinery. China also launched a dispute at the World Trade Organization (WTO) over Trump’s tariffs, while an antitrust probe into Google is seen as a warning shot.

Some U.S. economy experts believe the latest exchanges between the world’s two biggest economies could lead to decreased economic activity. However, proponents argue that Trump’s approach will benefit the U.S. in the long term.