World Economy Meeting Casts Spotlight on Trade War

04/23/25 • 29 min

The world's top economic and financial authorities descend on Washington this week for the IMF/World Bank Spring Meetings. The focus this year is overwhelmingly on trade, as US President Donald Trump's reciprocal tariffs hang over the event. And nowhere are levies more painful than in China, where the highest rates threaten economic growth.

Arthur Kroeber, founding partner of research consultancy Gavekal Dragonomics and author of China's Economy: What Everyone Needs to Know, joins Katia Dmitrieva in Washington for a discussion about the new trade era, China's economic travails and how the trade stalemate with the US could end.

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Previous Episode

Trump Tariffs Paused, But Economies Still on Edge

It's been a wild few weeks in trade and markets. After unleashing reciprocal tariffs on the world, US President Donald Trump then walked them back, pausing the additional levies for every nation except China. Some exemptions were also carved out, including for iPhones. Negotiations have since ramped up with countries including Vietnam, which hope to scale down or remove the threat of tariffs altogether.

Asia is perhaps the hardest hit region, given the scope of tariffs on China and how dependent the region is on trade. Economic growth, company profits and labor markets will take a hit – even without the tariffs in place, uncertainty alone is curbing investment. But there is a longer-term silver lining: the protectionist policies have pushed officials to consider a world in which they rely less on the US and more on domestic growth drivers.

HSBC chief Asia economist Frederic Neumann sits down with Katia Dmitrieva to discuss tariffs, the countries that may be hit hardest and what this new world of trade looks like.

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Next Episode

Rebuilding Hong Kong's Image as Asia's World City

Hong Kong is starting to look up. The Hang Seng Index has rebounded from last year’s lows and tourists are flocking to major musical and sporting events in the city's new stadium. Even expats – many of whom left for Singapore, London and elsewhere during the pandemic – appear to be returning.

But structural challenges remain. The commercial property market is beset by record-high vacancy rates while retailers are reeling as residents find significant cost savings over the border in cities such as Shenzhen. And now we have the onset of US tariffs. What will it take for Hong Kong to recapture its reputation as Asia's vibrant, international city?

Benjamin Quinlan, CEO of Quinlan & Associates and conference ambassador at the Hong Kong Tourism Board, says the city needs to double down on mega events. He joins John Lee and Katia Dmitrieva on the Asia Centric podcast.

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Asia Centric by Bloomberg Intelligence - World Economy Meeting Casts Spotlight on Trade War

Transcript

Speaker 100:00:01.800

The IMF World Bank Meetings kicked off this week in Washington, and this year it feels very different. The world trade system is in chaos, and the US, usually a world leader in many ways, is now the cause of this chaos with President Donald Trump's tariffs on the world. You're listening to Asia Centric from Bloomberg Intelligence. I'm Katy Dmitrieva and this week I'm in Washington for the IMF World Bank Meetings, where the world's economic leader