Trump’s use of tariffs to influence key industries like steel and aluminium, he says, serves multiple purposes, such as shifting spending, impacting prices, and pressuring allies on immigration policies and military expenditures.
“I think that is what the use of tariffs is doing to achieve both economic goals of trying to maximise the amount of domestic employment and high-paying industries and increase the production capacity of strategic industries, but around the world, to get people to live up to their end of the bargain and to come to the bargaining table seriously,” he explained.
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Discussing the impact of US policies on Asian economies, particularly Japan and China, Lee stated that China understands the importance of the US market but is also trying to diversify its sources of demand. However, China’s domestic economy remains weak despite stimulus measures and interest rate cuts.
“John Maynard Keynes in 1930 said, you have to increase aggregate demand to get the economy out of the doldrums. And China has not been willing to do that, because President Xi does not believe that any kind of transfer of households is good, because it promotes laziness,” Lee said.
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For the entire interview, watch the accompanying video
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(Edited by : Shweta Mungre)
First Published: Feb 17, 2025 10:57 am IS
